Description

NSE announces revised price bands for securities across different categories, effective October 08, 2025, impacting 3,006 securities with bands ranging from 2% to 40%.

Summary

NSE has announced changes to price bands for securities effective October 08, 2025, pursuant to Capital Market Segment Regulation Part-A, 2.5. The circular categorizes 3,006 securities into six different price band categories: 2% (37 securities), 5% (414 securities), 10% (189 securities), no band (210 securities), 20% (2,155 securities), and 40% (1 security). Securities with derivative products will continue to have a 10% daily operating range, and close-ended mutual funds will have a 10% price band.

Key Points

  • Total 3,006 securities affected by price band changes
  • 37 securities assigned 2% price band (Annexure I)
  • 414 securities assigned 5% price band (Annexure II)
  • 189 securities assigned 10% price band (Annexure III)
  • 210 securities with no price band (Annexure IV)
  • 2,155 securities assigned 20% price band
  • 1 security assigned 40% price band
  • Securities with derivative products maintain 10% daily operating range
  • All close-ended mutual funds subject to 10% price band
  • Price bands in Limited Physical Market same as normal market

Regulatory Changes

Price band adjustments implemented under Capital Market Segment Regulation Part-A, 2.5. Securities are categorized based on surveillance criteria with tighter bands (2% and 5%) applied to securities requiring enhanced monitoring. The revised framework maintains existing provisions for derivative-enabled securities to retain 10% bands regardless of underlying categorization.

Compliance Requirements

  • Members must apply revised price bands from October 08, 2025
  • Same price bands applicable in both normal market and Limited Physical Market
  • Members should monitor daily price band reviews on NSE website
  • Queries to be directed to surveillance@nse.co.in

Important Dates

  • Circular Date: October 07, 2025
  • Effective Date: October 08, 2025
  • Circular Reference: NSE/SURV/70683, Circular Ref. No: 777/2025

Impact Assessment

The price band changes significantly impact trading dynamics for 3,006 securities. Securities with tighter bands (2% and 5%) representing 451 securities will experience restricted intraday volatility, affecting day trading strategies and liquidity. The 37 securities in the 2% band category include stocks in BE, BZ, and ST series, indicating heightened surveillance concerns. Market participants must adjust risk management frameworks, algorithmic trading parameters, and circuit breaker monitoring systems. The measure aims to curb excessive speculation and protect investors in volatile or surveillance-intensive securities while maintaining market efficiency for derivative-backed securities and mainstream stocks.

Impact Justification

Affects 3,006 securities with varying price bands, directly impacting trading volatility limits and risk management for market participants across multiple categories.