Description

BSE revises circuit filter percentage to 2% for 68 securities across various sectors, affecting daily price movement limits.

Summary

BSE has revised the circuit filter percentage to 2% for 68 securities effective from the date of the circular. The circuit filter limits the maximum price movement (both upward and downward) that a security can experience during a trading session. This revision applies to securities across various sectors including pharmaceuticals, infrastructure, finance, technology, and manufacturing.

Key Points

  • Circuit filter revised to 2% for 68 securities
  • Applies to stocks across multiple sectors and market segments
  • Restricts daily price movement to ±2% from previous closing price
  • Includes companies like Aadi Industries Ltd, ABM Knowledgeware Ltd, Future Enterprises Ltd, GVK Power & Infrastructure Ltd, among others
  • Each security identified by unique scrip code and ISIN number

Regulatory Changes

The exchange has implemented tighter price band controls by reducing the circuit filter to 2% for the listed securities. This is typically done as a surveillance measure to curb excessive volatility and protect investor interests in securities that may be exhibiting unusual price movements or require enhanced monitoring.

Compliance Requirements

  • Trading members must ensure compliance with the revised 2% circuit filter limits
  • Orders exceeding the circuit limits will be rejected by the trading system
  • Market participants should adjust their trading strategies accordingly for the affected securities
  • Price discovery will be constrained within the 2% band for these securities

Important Dates

  • Effective Date: February 4, 2026 (date of circular issuance)
  • The revised circuit filters are applicable immediately for all trading sessions going forward

Impact Assessment

Trading Impact: The 2% circuit filter significantly restricts intraday price volatility for these securities. Traders and investors will experience limited price movement, which may affect liquidity and trading volumes. Day trading strategies may need adjustment due to the narrow price range.

Market Implications: This measure is typically implemented for securities under surveillance or experiencing abnormal volatility. The tight circuit filter serves as a protective mechanism but may also indicate regulatory concerns about these securities.

Investor Considerations: Investors should be aware that these stocks are subject to enhanced surveillance measures. The restricted price movement may impact exit and entry strategies, particularly for large positions that require multiple trading sessions to execute.

Affected Securities Table

The circular lists 68 securities with their respective scrip codes and ISIN numbers, all now subject to a 2% circuit filter. The list includes diverse companies ranging from large infrastructure players like GVK Power & Infrastructure Ltd to smaller companies across pharmaceuticals, technology, finance, and manufacturing sectors.

Impact Justification

Circuit filter revision to 2% restricts daily price volatility for 68 securities, impacting trading dynamics and liquidity but affects lower-tier stocks with limited market impact