BSE resets circuit limit of Unitech, 9 others

NEW DELHI: To curb excessive volatility, top stock exchange BSE has tweaked the circuit limit for share movement of 10 companies including realty firm Unitech and Hindustan Motors.

The new limits, effective tomorrow, will ensure stock prices do not go up or down beyond a level during a session.

Circuit filter mechanism is used by stock exchanges to keep excessive volatility in check. It is the maximum fluctuation that is allowed during trading, which gets suspended if the permissible limit is hit in either direction.

Share price of Unitech cannot change by more than 20 per cent in a day, BSE said in a circular.

Besides, the exchange has set a circuit limit of 10 per cent for Hindustan Motors, Rajratan Global Wire, Modex International Securities and Capital Trade Links.

Also, it has fixed a limit of five per cent for four companies -- Aayush Food and Herbs, Atharv Enterprises, Jai Balaji Industries and Kaushalya Infrastructure Development Corporation -- and a limit of two per cent for IB Infotech Enterprises.

"Trading members of the exchange are hereby informed that the circuit filters has/have been changed from their existing levels...in the scrips (10) with effect from July 29, 2016," BSE said.