Stock Market News: Changes in the Circuit Limit of 5 Shares, Know Details

29 Sep, 2023 Author: Ayushee Joshi

Share Market News: The stock exchange has issued a statement stating that the circuit filter of five companies will be undergoing a change. The circuit limit for three firms is being cut from 20% to 10%, while the circuit limit for five companies is being reduced from 10% to 5%. These 5 companies include Omaxe, Ganga Pharmaceuticals Ltd, Kesar India, Vipul Ltd, and Informed Technologies.

What are Circuit Filters in Share Market?

A circuit filter is a technique employed by stock exchanges to reduce market volatility. It is the maximum price variation permitted while trading. Trading is halted if the maximum permitted limit is exceeded in either direction. Individual equities and indexes such as the Sensex and Nifty have their circuit limits set. If there are only buyers in any share, the trade will stop when the share has increased by a specified limit (determined by the exchange) of 5-20 percent. When there are only sellers, however, the stock moves to the lower circuit. The exchange changes these limitations on a regular basis. One such ruling is currently in effect from September 28th.