Description

BSE updates circuit filter percentages to 2% for numerous securities across various market segments.

Summary

BSE has revised price bands by setting circuit filter percentages to 2% for multiple securities. This circular updates the trading limits for approximately 85+ securities across various market segments, standardizing their price movement restrictions.

Key Points

  • Circuit filter percentage set to 2% for all listed securities
  • Affects securities across multiple sectors and market capitalizations
  • Includes companies from various industries including technology, pharmaceuticals, textiles, and infrastructure
  • Each security identified by scrip code and ISIN number for precise implementation

Regulatory Changes

  • Standardization of price band limits to 2% for the affected securities
  • Updated circuit filter mechanism to control excessive price volatility
  • Uniform application across diverse market segments

Compliance Requirements

  • Trading systems must implement the revised 2% circuit filter for all listed securities
  • Market participants must adhere to the new price movement limits
  • Surveillance systems to monitor compliance with updated price bands

Important Dates

  • Circular issued: August 6, 2025
  • Implementation: Effective immediately for trading sessions

Impact Assessment

  • Enhanced market stability through controlled price movements
  • Reduced volatility risk for retail and institutional investors
  • Improved market surveillance and risk management
  • Potential impact on liquidity for securities with historically higher volatility
  • Standardized risk parameters across affected securities

Impact Justification

Affects trading parameters for numerous securities which could impact market liquidity and volatility control