Description
NSE circular announcing revised price bands for 47 securities effective December 5, 2025, with 34 securities moved to 2% band and 13+ securities to 5% band.
Summary
NSE has announced changes to price bands for 47 securities effective from December 5, 2025. This surveillance measure restricts the maximum price movement allowed during trading sessions. Annexure I lists 34 securities subject to a 2% price band, while Annexure II lists at least 13 securities (partial list provided) subject to a 5% price band. The affected securities span multiple series including EQ (Equity), BE, BZ, ST, and SM, indicating various surveillance and trading categories.
Key Points
- 34 securities moved to 2% price band (tighter restriction)
- Minimum 13 securities moved to 5% price band (moderate restriction)
- Effective date: December 5, 2025
- Covers securities across multiple trading series (EQ, BE, BZ, ST, SM)
- Includes companies from diverse sectors: pharmaceuticals, infrastructure, textiles, technology, FMCG, media
- Notable companies include Future Enterprises Limited, GVK Power & Infrastructure, MEP Infrastructure, Siti Networks, and Winsome Yarns in the 2% band
- 5% band includes AGS Transact Technologies, Aban Offshore, and Aditya Birla Sun Life CRISIL Liquid Overnight ETF
Regulatory Changes
This circular implements enhanced surveillance measures through price band restrictions. Price bands limit the maximum percentage change in stock price during a trading session from the previous closing price. The tighter 2% band significantly restricts volatility for 34 securities, while the 5% band applies moderate restrictions to others. These measures are typically applied to securities exhibiting unusual price movements, low liquidity, or requiring enhanced surveillance due to corporate actions or market concerns.
Compliance Requirements
- Trading members must ensure their systems are updated with new price band limits before market opening on December 5, 2025
- Orders placed beyond the applicable price band will be rejected
- Risk management systems must be recalibrated for affected securities
- Investors and traders need to adjust their trading strategies and stop-loss orders according to new bands
- Market surveillance teams must monitor compliance with new restrictions
Important Dates
- Effective Date: December 5, 2025 - New price bands applicable from market opening
- Circular Date: December 4, 2025
Impact Assessment
Trading Impact: Severe restriction on intraday volatility for 34 securities with 2% bands will significantly limit trading opportunities and may reduce liquidity. Day traders and momentum strategies will be particularly affected.
Investor Impact: Long-term investors face limited immediate impact, but execution of large orders may become more challenging requiring multi-day accumulation or distribution.
Market Liquidity: Expected reduction in trading volumes for affected securities as arbitrage opportunities narrow and algorithmic trading systems may reduce participation.
Risk Management: Brokers and risk management systems must immediately update position limits and margin requirements for these securities to account for reduced volatility limits.
Sector Concentration: Multiple sectors affected including infrastructure (GVK, MEP, Ansal), textiles (Winsome, Soma, Gujarat Raffia), technology (TechD, 21st Century), and pharmaceuticals (Bafna, Aarey Drugs), indicating broad surveillance concerns across markets.
Impact Justification
Significant trading restriction affecting 47 securities with tighter price bands limiting intraday volatility, directly impacting trading strategies and liquidity for these stocks.