Circuit limit changes: Bombay Stock Exchange (BSE) has decided to impose new price bands or circuit limits on shares of 57 companies from October 27, 2025. Its purpose is to prevent unusual trading activities and protect investors from potential risks.
BSE marks those stocks which show sudden sharp fluctuations in trading volume or price. For this, the exchange takes necessary steps under its regular surveillance mechanism. In this process, the price band of many stocks can be reduced by 2%, 5% or 10%.
BSE surveillance measures
The price band for each stock is decided so that its price does not rise or fall suddenly. If a stock shows abnormal volatility, a more stringent price band is applied.
When is special margin applied?
Special margin is applied when there is an abnormal increase in price or trading volume in a stock. In this situation BSE can impose special margin up to 25%, 50% or 75%. Its purpose is to protect investors from huge losses due to rumors or speculation.
Change in price band of which companies?
What is price band?
Price band is a fixed limit of maximum and minimum fluctuations of a share in a day. That is, a stock’s price cannot go above or below this range in a trading session. It is also called circuit limit or day price band. Its purpose is to control sudden sharp fluctuations and manipulation in the market.
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