BSE lowers circuit limit for Kingfisher shares to 5%

Change is effective from September 27, 2013

The BSE today lowered the circuit limit for shares of Kingfisher Airlines capping its maximum movement in a day at 5% after a recent rally in the stock.

The change will be effective from tomorrow and follows a sharp rally in the share price of the company in the past few days, where it has surged by more than 35%.

In a circular, the exchange said, "The circuit filter has been changed from their existing levels in the scrip (of Kingfisher) with effect from September 27, 2013."

In addition, BSE has set a circuit level of 20% for Raymond Ltd and 10% for Indian Hotels Company Ltd.

Earlier, Kingfisher shares were allowed an upward or downward movement of 10% in a day.

The exchanges generally lower the circuit filter of a stock as part of their surveillance mechanism to avoid excessive volatility in the share price.

Kingfisher has seen an upward movement in its share price in the past few days after its Chairman Vijay Mallya said that the carrier is in talks with a foreign investor for potential stake sale.

Shares of Kingfisher today climbed by 9.91% to close at Rs 6.21 apiece on the BSE.