Description

BSE announces revised price bands for 43 scrips ranging from 2% to 20%, effective from October 20, 2025, impacting daily trading limits for these securities.

Summary

BSE has announced revisions to price bands for 43 securities effective from October 20, 2025. The revised price bands range from 2% to 20%, replacing existing levels. Price bands determine the maximum percentage by which a security’s price can move up or down during a trading session. This surveillance measure is typically applied to securities with higher volatility or those requiring enhanced monitoring.

Key Points

  • 43 securities will have revised price bands effective October 20, 2025
  • Price band restrictions range from 2% (most restrictive) to 20% (least restrictive)
  • 5 securities have 2% price bands: Anka India Ltd, Elango Industries Ltd, Milestone Furniture Ltd
  • 17 securities have 5% price bands
  • 6 securities have 10% price bands
  • 15 securities have 20% price bands
  • Changes are part of BSE’s surveillance measures
  • Trading members have been notified through Notice No 20251017-53

Regulatory Changes

This circular represents an update to existing surveillance measures. Price bands are regulatory tools used by exchanges to:

  • Control excessive intra-day volatility
  • Protect investors from sharp price movements
  • Monitor securities under surveillance
  • Ensure orderly trading

The revision indicates BSE’s ongoing assessment of market conditions and individual security behavior, with tighter bands (2%-5%) suggesting heightened surveillance concerns.

Compliance Requirements

  • Trading Members: Must implement revised price bands in their trading systems before October 20, 2025
  • Risk Management Systems: Update circuit limit parameters for affected securities
  • Investor Communication: Inform clients trading in these securities about the revised limits
  • Queries: Contact bse.surv@bseindia.com for clarifications

Important Dates

  • Circular Date: October 17, 2025
  • Effective Date: October 20, 2025
  • Notice Number: 20251017-53

Impact Assessment

Market Impact: Medium - The revised price bands will limit intra-day price movements for 43 securities, potentially reducing trading volumes and liquidity in these scrips. Securities with tighter bands (2%-5%) will experience more restricted price discovery.

Investor Impact: Traders and investors in these securities will face limited intra-day price movements, which may affect short-term trading strategies, stop-loss orders, and volatility-based strategies. Day traders may find reduced opportunities in securities with 2%-5% bands.

Operational Impact: Trading members must update their risk management systems, order management platforms, and client alerts to reflect the new price bands. Failure to update systems could result in order rejections.

Surveillance Context: The application or tightening of price bands often indicates exchange concerns about volatility, price manipulation, or other surveillance issues. Investors should exercise additional caution when trading these securities.

Impact Justification

Moderate importance as price band changes affect trading volatility limits for 43 securities. Impact is limited to specific scrips but could affect trading strategies and risk management for investors holding these stocks.