On Monday, nearly a dozen mid-cap and small-cap shares crashed, prompting SEBI to initiate a probe into panic selling triggered by speculation that pledged shares are being sold by certain entities
The Bombay Stock Exchange (BSE) on Tuesday decided to lower circuit limit of scrips of 12 companies, including those which were beaten in the mid-cap crash on Monday.
The changes would effective from Wednesday, the exchange said in a circular.
BSE has capped the maximum movement in a day at 10% for five stocks—Aanjaneya Lifecare, Bhagwati Banquets & Hotels, Gemini Communications, Sudar Industries.
Besides, DB Realty, 7seas Technologies, Bhoruka Aluminium, Broadcast Initiatives, Vardhman Polytex and WH Brady & Co would be allowed an upward or downward movement of 5% in day.
BSE also said the circuit limit of Jolly Plastic Industries would be 2%.
The exchanges generally lower the circuit filter of a stock as part of their surveillance mechanism to avoid excessive volatility in the share price.
On Monday, about a dozen mid-cap and small-cap shares crashed, including Aanjaneya Lifecare which fell by 20%, prompting the Securities and Exchange Board of India (SEBI) to initiate a probe into panic selling triggered by speculation that pledged shares are being sold by certain entities.
Inside story of the National Stock Exchange’s amazing success, leading to hubris, regulatory capture and algo scam
Fiercely independent and pro-consumer information on personal finance.
1-year online access to the magazine articles published during the subscription period.
Access is given for all articles published during the week (starting Monday) your subscription starts. For example, if you subscribe on Wednesday, you will have access to articles uploaded from Monday of that week.
This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.
Fiercely independent and pro-consumer information on personal finance.
30-day online access to the magazine articles published during the subscription period.
Access is given for all articles published during the week (starting Monday) your subscription starts. For example, if you subscribe on Wednesday, you will have access to articles uploaded from Monday of that week.
This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.
Fiercely independent and pro-consumer information on personal finance.
Complete access to Moneylife archives since inception ( till the date of your subscription )
