The Bombay Stock Exchange (BSE) has increased circuit limit from 5% to 10% and from 10% to 20%.

Circuit filters is a mechanism used by stock exchanges, to curb excessive volatility in the market. It is the maximum price fluctuation allowed during trading and trading gets suspended if the maximum permissible limits gets hit in either direction.

As a part of the review of the surveillance action, the BSE circuit filters are revised in the various scripts and that will be effective from December 07, 2017.

Scripts in T, Z, P, MT, ZP, ST and XT group will have a circuit filter of 5% or lower. BSE has increased circuit limit for 46 stocks from 2% to 5%, 12 stocks from 5% to 20%, 186 stocks from 5% to 10% and 139 stocks from 10% to 20%.

Further, it has reduced circuit limit for 3 stocks from 5% to 2 %, 5 stocks from Rs 10 to Rs 5, 5 stocks from 20% to 10% and 5 stocks from 20% to 5%.

Read EquityPandit’s Technical Analysis of Indian Stock Market