Description

BSE has revised circuit filter limits to 2% for multiple securities effective from the specified date. This circular lists all affected scrip codes and ISINs with their revised price bands.

Summary

BSE has revised the circuit filter percentage to 2% for multiple securities effective from the date specified in the circular. Circuit filters are price bands that limit the maximum price movement (up or down) that a security can experience during a trading session. This revision applies to over 70 securities across various sectors.

Key Points

  • Circuit filter revised to 2% for all listed securities in this circular
  • Affects securities across diverse sectors including pharmaceuticals, infrastructure, technology, real estate, and manufacturing
  • Includes companies like A2Z Infra Engineering Ltd, Aarey Drugs & Pharmaceuticals Ltd, Ansal Properties & Infrastructure Ltd, and many others
  • The 2% circuit filter is typically applied to securities under enhanced surveillance or with higher volatility concerns
  • Complete list includes scrip codes, ISIN numbers, and company names for easy identification

Regulatory Changes

The circuit filter mechanism has been adjusted from previous levels to 2% for the specified securities. Circuit filters are a market surveillance tool used by exchanges to:

  • Control excessive volatility in individual securities
  • Prevent manipulation and extreme price movements
  • Provide cooling-off periods during unusual market activity
  • Protect investor interests

A 2% circuit filter means trading will be halted if the security’s price moves up or down by 2% from the previous closing price during the trading session.

Compliance Requirements

  • Trading Members: Must ensure their systems are updated with the new circuit filter limits
  • Market Participants: Should be aware of the revised price bands when placing orders
  • Risk Management Systems: Need to incorporate the updated circuit filter percentages
  • Investors: Should factor in the 2% daily movement limit when planning trades in these securities

Important Dates

  • Effective Date: As specified in the circular (October 7, 2025 or next trading session)
  • Implementation: Immediate upon notification

Impact Assessment

Market Impact:

  • Limited intraday price movement to ±2% for affected securities
  • May reduce trading volumes in these securities due to tighter price bands
  • Could increase trading halts if securities hit circuit limits

Trading Impact:

  • Day traders and short-term traders will face more restrictive price movement constraints
  • Reduced volatility may impact options and derivatives strategies
  • Price discovery may be affected due to frequent circuit breakers

Investor Impact:

  • Provides downside protection by limiting maximum loss to 2% per session
  • May create liquidity issues if securities repeatedly hit circuit limits
  • Long-term investors less affected compared to active traders

Operational Impact:

  • Brokers need to update risk management systems
  • Algorithmic trading systems require recalibration
  • Increased monitoring required for securities approaching circuit limits

Impact Justification

Circuit filter revision to 2% affects trading volatility limits for numerous securities. Medium importance as it impacts day trading limits but is a standard surveillance measure. Medium impact affecting traders and investors in the listed securities.