Circuit limit changes: Bombay Stock Exchange (BSE) has decided to implement the revised price band i.e. circuit limit on the shares of 31 companies from December 1, 2025. Its purpose is to control unusual trading activities and protect investors from potential risks.
BSE from time to time identifies stocks which show sudden sharp fluctuations in price or volume and takes necessary action as part of its surveillance process. In this process, the price band of some shares can be reduced by 2%, 5% or 10%.
How does BSE take surveillance action?
BSE is not limited to just changing the price band. If necessary, sending a share to the trade-to-trade segment, imposing special margin or suspending a share/member are also part of the surveillance measures.
The price band fixed for every stock is so that it can be kept within the controlled range by preventing sudden and sharp rise or fall in the price. If a stock experiences abnormal volatility, a tighter price band is immediately imposed on it.
When does special margin apply?
When a sudden sharp rise in the price or trading volume of a stock is observed, then BSE applies special margin on it. This margin can be up to 25%, 50% or 75%. Its goal is to protect investors from possible losses caused by rumors, speculation or speculative trading.
List of companies with revised price band
What does this mean for investors
These surveillance measures of BSE are necessary to maintain transparency in the market, prevent possible manipulation in stock prices and protect the interests of investors. Whenever a stock shows an unusual rise or fall, the exchange immediately intervenes and tries to stabilize the market.
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