Description

BSE has revised price bands for 16 scrips ranging from 2% to 20%, effective from October 29, 2025, as part of surveillance measures.

Summary

BSE has issued Notice No. 20251028-43 revising price bands for 16 securities under the equity segment, effective from October 29, 2025. The revised price bands range from 2% (most restrictive) to 20% (least restrictive), reflecting varying levels of surveillance measures applied to these scrips. Trading members have been notified to implement these changes from the specified effective date.

Key Points

  • Price bands revised for 16 securities effective October 29, 2025
  • Revised price bands range from 2% to 20% depending on the scrip
  • Most restrictive band of 2% applied to: Kkalpana Plastick Ltd, Mudunuru Ltd, and PVP Ventures Ltd
  • Least restrictive band of 20% applied to: Magnus Steel and Infra Limited
  • Majority of securities (8 out of 16) assigned 5% or 10% price bands
  • Notice issued under surveillance department as part of market monitoring measures
  • Clarifications can be sought at bse.surv@bseindia.com

Regulatory Changes

This circular implements surveillance measures through price band adjustments. Price bands limit the maximum price movement (up or down) allowed for a security during a trading session. Tighter bands (2-5%) indicate higher surveillance concerns and restrict volatility, while wider bands (10-20%) allow greater price movement.

Compliance Requirements

  • Trading Members: Must implement the revised price bands in their trading systems before market opening on October 29, 2025
  • Risk Management Systems: Update risk parameters and position limits based on new price bands
  • Client Communication: Inform clients trading in these securities about the revised price movement limits
  • Order Management: Ensure orders are placed within the new price band limits to avoid rejections

Important Dates

  • Notice Date: October 28, 2025
  • Effective Date: October 29, 2025
  • Implementation: Before market opening on October 29, 2025

Impact Assessment

Market Impact: The revision of price bands will affect intraday trading dynamics for these 16 securities. Stocks with tighter bands (2-5%) will experience reduced volatility and potentially lower liquidity as price movements are constrained. This may lead to increased order rejections and wider bid-ask spreads.

Trading Impact: Traders and algorithms using these securities will need to adjust their strategies to account for reduced price movement limits. Day trading opportunities will be limited for securities with 2% bands, while those with 20% bands retain greater flexibility.

Investor Impact: Retail and institutional investors holding positions in these stocks should be aware that exit or entry opportunities may be limited within a single trading session due to price band restrictions. Multi-day strategies may be required for significant position changes.

Surveillance Context: The varying levels of price bands suggest differentiated surveillance concerns across these securities, with the exchange implementing proportionate restrictions based on individual scrip characteristics and trading patterns.

Impact Justification

Price band revisions affect trading in 16 securities, with significant restrictions ranging from 2% to 20%. This is a surveillance measure that will impact liquidity and volatility in these scrips, but affects a limited number of stocks with likely lower trading volumes.