Description

NSE revises price bands for 3,108 securities effective February 05, 2026, with bands ranging from 2% to 40% based on security classifications and surveillance measures.

Summary

NSE has issued revised price bands for 3,108 securities effective February 05, 2026, under Capital Market Segment Regulation Part-A, 2.5. The price bands range from 2% to 40% depending on security classification. Securities are categorized into six groups: 25 securities with 2% band, 361 with 5% band, 137 with 10% band, 208 with no band (derivatives underlying), 2,376 with 20% band, and 1 security with 40% band. All close-ended Mutual Funds will have a 10% price band.

Key Points

  • Total 3,108 securities affected by price band revisions
  • 25 securities restricted to 2% price band (Annexure I) - includes 21st Century Management, Anondita Medicare, Ansal Properties, Blue Chip India, Future Enterprises, GVK Power, MEP Infrastructure, Siti Networks, Winsome Yarns
  • 361 securities with 5% price band (Annexure II) - includes Aaa Technologies, Aban Offshore, Aditya Birla Sun Life CRISIL Liquid Overnight ETF
  • 137 securities with 10% price band (Annexure III)
  • 208 securities with no band (Annexure IV) - securities on which derivative products are available maintain 10% daily operating range
  • 2,376 securities with 20% band (not listed in annexures)
  • 1 security with 40% band (not listed in annexures)
  • All close-ended Mutual Funds subject to 10% price band
  • Same price bands apply to Limited Physical Market
  • Annexure V contains list of securities whose bands have been revised

Regulatory Changes

This circular implements price band adjustments under Capital Market Segment Regulation Part-A, 2.5. The surveillance department has categorized securities into different risk brackets, with tighter 2% and 5% bands typically applied to securities under enhanced surveillance or those exhibiting higher volatility. The regulation maintains that securities with derivative products continue to have a 10% daily operating range despite “no band” classification.

Compliance Requirements

  • All NSE members must implement revised price bands from February 05, 2026
  • Trading systems must be updated to reflect new price band limits for affected securities
  • Members must apply identical price bands in Limited Physical Market as in normal market
  • Risk management systems should be adjusted to account for revised daily price movement limits
  • Members should monitor the NSE website for daily price band updates
  • For queries or clarifications, members should contact surveillance@nse.co.in

Important Dates

  • Circular Issue Date: February 04, 2026
  • Effective Date: February 05, 2026 - Revised price bands become applicable
  • Ongoing: Daily price band reviews will be updated on NSE website

Impact Assessment

High Impact on Trading Operations: The revised price bands significantly affect intraday trading ranges for 3,108 securities. Securities moved to 2% bands face severe trading restrictions, limiting maximum daily price movement to only 4% (2% up and 2% down), which will impact liquidity and volatility for these 25 securities including well-known names like Future Enterprises, GVK Power, and Siti Networks.

Risk Management Implications: Stricter bands (2% and 5%) suggest these securities are under enhanced surveillance, indicating potential concerns about price manipulation, volatility, or compliance issues. Traders and investors holding positions in these securities need to adjust stop-loss orders and margin requirements.

Market Liquidity Impact: Tighter price bands may reduce trading volumes and liquidity in affected securities as market participants face limited price discovery within restricted ranges. This is particularly relevant for the 25 securities in the 2% band category.

Derivative Trading: The 208 securities with “no band” designation maintain their 10% daily operating range to align with underlying derivative contracts, ensuring consistency in cash and derivatives segments.

System Updates Required: Brokers and trading platforms must update their systems before market opening on February 05, 2026 to prevent order rejections and ensure smooth trading operations.

Impact Justification

Affects 3,108 securities with revised price bands impacting daily trading limits and risk management for all market participants. Critical for trading strategies and position management.