Circuit limit changes: Bombay Stock Exchange (BSE) has announced the implementation of revised price band or circuit limit on the shares of 26 companies from December 15, 2025, to control abnormal fluctuations in the market. Its objective is to protect investors from the risk of sudden sharp rise or fall and to maintain market stability.
BSE from time to time identifies stocks which witness unusual movements in price or trading volume and takes action under its regular surveillance mechanism. Under this, the price band can be limited to 2%, 5% or 10% or can be increased if needed.
Other surveillance measures also implemented
BSE’s surveillance is not limited to just changing the price band. If the situation becomes serious, the exchange can also implement some other measures. Such as…
There is a fixed price band for each stock to prevent uncontrolled volatility. If a stock shows persistent abnormal rise or fall, a tighter price band is applied to it.
Price bands of these companies will change
When is special margin applied?
When there is an unusual rise in the price or trading volume of a stock, BSE applies special margin on it. This margin can be up to 25%, 50% or 75%, depending on the situation. Its objective is to protect investors from possible losses due to rumours, circular trading or speculation and to control unnecessary volatility in the market.
Why are BSE surveillance measures necessary?
These surveillance measures of BSE play an important role in increasing transparency in the market, preventing any kind of price manipulation and ensuring protection of investors’ interests. Additionally, these measures also control the short-term spikes often seen in small and less liquid stocks. This is why rules like price band, special margin are considered very important to maintain market stability and strengthen investor confidence.
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