Description

BSE revises circuit filter percentage to 2% for multiple scrips effective from the specified date, impacting daily price movement limits for affected securities.

Summary

BSE has revised the circuit filter percentage to 2% for multiple securities across various sectors. This circuit filter restricts the maximum price movement (both upward and downward) to 2% from the previous day’s closing price during a trading session. The circular lists scrips with their corresponding scrip codes and ISIN numbers that are now subject to this tighter price band.

Key Points

  • Circuit filter percentage set at 2% for all listed securities
  • Restriction applies to both upper and lower price movements
  • Affects over 70+ securities across multiple sectors including pharmaceuticals, infrastructure, technology, real estate, and manufacturing
  • Securities identified by scrip code, ISIN number, and company name
  • Measure likely implemented as surveillance or risk management action

Regulatory Changes

The exchange has modified the circuit filter mechanism for the specified securities, tightening the allowable price movement band from the standard circuit filters to a restrictive 2% limit. This is typically applied to securities exhibiting unusual price movements, low liquidity, or requiring enhanced surveillance.

Compliance Requirements

  • Trading members must ensure that orders for affected scrips comply with the 2% circuit filter limits
  • System-level checks will prevent trades beyond the circuit limits
  • Members should update their risk management systems to reflect the revised price bands
  • Investors should be informed about the restricted price movement for these securities

Important Dates

  • Circular Date: October 7, 2025
  • Effective Date: As specified by the exchange (typically effective immediately or from next trading session)

Impact Assessment

Trading Impact: The 2% circuit filter significantly restricts intraday price volatility, limiting both gains and losses within a single trading session. This may reduce speculative trading activity and improve price stability but could also impact liquidity.

Investor Impact: Investors holding or trading these securities will face limited price discovery during the session. Large orders may face execution challenges, and exit/entry strategies may require multiple sessions to execute at desired price levels.

Market Operations: The exchange’s surveillance mechanism suggests these securities may have exhibited concerning price movements or volatility patterns. The restrictive circuit filter serves as a cooling-off measure to prevent excessive speculation and protect investor interests.

Sectoral Coverage: The diverse range of affected companies spans multiple sectors including pharmaceuticals, infrastructure, real estate, technology, and manufacturing, indicating either sector-wide concerns or individual company-specific issues requiring surveillance.

Impact Justification

Circuit filter restriction to 2% significantly limits intraday price movement for affected scrips, impacting trading strategies and liquidity. Applies to numerous securities indicating heightened surveillance or volatility concerns.