The Bombay Stock Exchange (BSE) has clarified the price band circular issued on August 9 was applicable to securities listed exclusively on the BSE and falling under groups X, XT, Z, ZP, ZY, Y. The bourse said the framework would be applicable for securities with a price of Rs 10 and more, market capitalization less than Rs 1000 crore. The circular will be effective from August 23.
Mid and small-cap stocks, that had taken a beating early in the day have managed to trim much of their intra-day losses. In a rising market, exchanges typically put price limits to curb excessive speculation. This usually sours sentiment for these stocks and results in a sell-off.
On Monday, the BSE had issued a circular specifying weekly, monthly and quarterly limits for stocks subject to pre-specified gains over the last 6 months, one year, two years and three years.
Stocks that had appreciated more than 6 times over the last six months, 12 times over the last 12 months, 20 times in two years and 30 times in three years would be subject to the limits.
The add-on price bands will be in addition to the applicable daily price bands of these securities, the BSE said.
Both S&P BSE midcap and smallcap indexes recovered from day's lows to trade higher but they were 150 and 343 points down, respectively.
(Edited by : Santosh Nair)
First Published: Aug 11, 2021 2:06 PM IST
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Over 50 onion farmers detained in Nashik ahead of PM Modi's visit
May 16, 2024 11:14 AM
Why Google CEO is cautiously optimistic about the election year
May 16, 2024 9:51 AM
Mark Mobius reveals how markets will react if NDA wins 400+ Lok Sabha seats
May 15, 2024 8:09 PM