BSE launches index-based circuit breaker system for March quarter

The Bombay Stock Exchange (BSE) has introduced an index-based circuit breaker system for the March quarter, whereby trading in Sensex scrips would be halted if the 30-share benchmark gains 4,100 points in a single day. The system will be applicable at three stages of the index movement either way at 10 per cent, 15 per cent and 20 per cent.

In case of a 10 per cent movement in either of these indices, which takes place before 1 pm, there will be a one-hour market halt. If the movement takes place at or after 1 pm, but before 2.30 pm, there will be a trading halt for half an hour. In case the movement took place at or after 2.30 pm, there would be no trading halt, the circular added.

In case of a 15 per cent movement, there will be a two-hour halt if it takes place before 1 pm. If the trigger is reached on or after 1 pm, but before 2 pm, there will be an hour’s halt. If it is reached on or after 2 pm, trading will be halted for the remainder of the day. In case of a 20 per cent movement of the index, the trading would be halted for the remainder of the day, it said.