Description

BSE revises circuit filter percentage to 2% for 71 securities including Ansal Properties, UTL Industries, Future Enterprises and others, effective from the specified date.

Summary

BSE has revised the circuit filter percentage to 2% for 71 securities across various sectors. This revision implements stricter price band limits, restricting the maximum price movement of these securities to 2% (both upper and lower circuits) during trading sessions. The circular lists all affected securities with their scrip codes, ISIN numbers, and company names.

Key Points

  • Circuit filter adjusted to 2% for 71 securities
  • Includes companies across diverse sectors: real estate, manufacturing, textiles, finance, steel, packaging, and trading
  • Notable companies include Ansal Properties & Infrastructure Ltd (500013), Future Enterprises Ltd (523574), Winsome Yarns Ltd (514348), and SPEL Semiconductor Ltd (517166)
  • All affected securities listed with complete identification details (Scrip Code, ISIN, Company Name)
  • Tighter circuit filters typically indicate higher volatility concerns or surveillance measures

Regulatory Changes

The exchange has modified the price band mechanism for the listed securities, reducing the permissible price movement range to ±2% from their previous circuit limits. This is a surveillance measure typically applied to securities exhibiting unusual price movements, high volatility, or requiring enhanced monitoring.

Compliance Requirements

  • Trading members must ensure their systems reflect the revised 2% circuit filter for all listed securities
  • Market participants should note the restricted price movement limits when placing orders
  • Risk management systems must be updated to account for the tighter circuit limits
  • Investors should be aware that trading in these securities will halt if prices hit the 2% circuit limit

Important Dates

  • Circular Date: December 04, 2025
  • Effective Date: Not explicitly specified in the provided content, but typically such revisions are implemented from the next trading session

Impact Assessment

Market Impact: The 2% circuit filter significantly restricts intraday price volatility for these 71 securities, potentially reducing liquidity and making it harder for large orders to be executed. This can lead to multiple circuit hits during volatile sessions.

Trading Impact: Traders and algorithmic systems must adjust their strategies to account for the narrower price bands. Day trading and momentum strategies may be particularly affected due to the limited price movement allowed.

Investor Impact: Long-term investors may face challenges in entering or exiting positions quickly, especially during periods of significant news or market movements. The measure provides downside protection but also limits upside potential within a single trading session.

Liquidity Impact: Tighter circuits typically reduce market liquidity as willing buyers and sellers cannot transact beyond the 2% limits, potentially leading to order accumulation at circuit levels.

Impact Justification

Affects trading dynamics for 71 securities by implementing stricter 2% circuit filters, which limits daily price movement and impacts liquidity and trading strategies for these stocks