Circuit Limit Changes: Bombay Stock Exchange (BSE) has taken a major step to curb unusual trading activities in the market. The exchange has announced to implement the revised price band i.e. circuit limit on the shares of 37 companies from December 22, 2025. According to BSE, its purpose is to control sudden sharp fluctuations in shares and protect investors from possible risks.
Why does the circuit limit change?
BSE from time to time identifies stocks which see unusual rise or fall in price or trading volume. In such cases, the Exchange takes action under its regular surveillance mechanism. Under this, the price band of a stock can be limited to 2 percent, 5 percent or 10 percent, so that excessive volatility can be prevented.
Solutions not limited to price band only
Surveillance measures are not limited to just price bands. If necessary, this also includes putting a share in the trade-to-trade segment, imposing special margin or temporarily suspending the share or any member. The fixed price band for each stock is kept so that there are no sudden and excessive fluctuations in the price. If there is excessive volatility in any stock, then a strict price band is imposed on it.
37 shares with change in price band
When is special margin applied?
BSE also applies Special Margin when an unusual rise or sudden jump is observed in the price of a stock or its trading volume. This margin can be up to 25 percent, 50 percent or 75 percent. Its purpose is to protect investors from possible losses due to rumours, speculation and speculation and to maintain discipline in the market.
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