Circuit limit changes: Bombay Stock Exchange (BSE) has implemented revised price band i.e. circuit limit on shares of 60 companies from Monday, November 3, 2025. Its purpose is to control abnormal trading activities and protect investors from potential risks.
BSE monitors those stocks which see sudden sharp fluctuations in price or volume. As part of its regular surveillance mechanism, the exchange may reduce the price band by 2%, 5% or 10% to prevent excessive volatility in any stock.
What is price band or circuit limit?
BSE sets a price band i.e. circuit limit for every stock so that its price cannot go up or down more than a certain limit. If a stock shows abnormal fluctuations, a tighter band is imposed on it.
When is special margin applied?
Special margin is applied when there is a sudden increase in the price or trading volume of a share. In such a situation, BSE can impose a special margin of up to 25%, 50% or 75%. Its purpose is to protect investors from huge losses due to rumors and speculations.
Companies with revised circuit limits
Purpose of BSE’s surveillance action
The purpose of surveillance actions of BSE is to maintain transparency in the stock market and prevent any kind of price manipulation. When a stock sees a sudden, sharp movement in price or volume, the exchange checks whether it is the result of illegal activity or rumors.
In such cases, BSE takes steps like reducing the price band, imposing special margin or putting the stock in the trade-to-trade segment. This keeps the market stable and investors can be protected from unnecessary risk or loss.
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