Circuit Filters And Trading Bands

SEBI, Securities and Exchange Board of India, has set some rules to check the volatility of shares and to determine the fixed price bands for different securities within which they fluctuate in a day.

As per SEBI Directive:- 
SEBI

  • All securities traded at or above Rs.10/- and below Rs.20/- have a daily price band of ± 25%.
  • All securities traded below Rs. 10/- have a daily price band of ± 50%.
  • Price band for all securities traded at or above Rs. 20/- has a daily price band of ± 8%. 
For selected 100 scrips, the price bands have been relaxed to ± 8%  after a cooling period of half an hour. The base price to calculate the prices is the previous day's closing price of the scrip. Here, it has to be noted that the closing price on BSE and NSE can be different, hence the circuit limit for a share on BSE and NSE can be different.

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