In order to curb excessive volatility, leading bourse BSE has revised the circuit limit for shares of 20 companies.
The new limits, effective August 28, will ensure stock prices do not fluctuate beyond a prescribed level during a session.
As per a BSE notice, a circuit limit of 20 per cent has been set for Andhra Cements, PVP Ventures, Bharati Defence and Infrastructure, Ess Dee Aluminium, KSK Energy Ventures, Madras Fertilizers, Oriental Trimex, Tarmat, Radha Madhav Corporation and Tarapur Transformers.
The exchange has also set a limit of 10 per cent on OCL Iron and Steel, Urja Global, Assam Company (India), Aptech, Noida Toll Bridge Company, Narayani Steels and Uttam Value Steels.
Besides, BSE has set a circuit limit of 5 per cent for Uday Jewellery Industries and 2 per cent for Layla Textile and Traders and Panafic Industrials.
Circuit filter mechanism is used by BSE to keep in check excessive volatility in a scrip. It is the maximum fluctuation that is allowed in a stock in a day.
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