BSE revises circuit filter for over 1,500 companies

Move part of a surveillance review

The BSE has revised the circuit filter, a mechanism which decides the maximum amount by which a stock can move in a day, for over 1,500 companies. The changes were made as part of a surveillance review, the exchange said in a notice on its website. The new circuit filters would be applicable from Monday. 

 

“Trading members of the exchange are hereby informed that as a part of review of the surveillance action, the circuit filters are revised in the various scrips. The revised circuit filter as indicated there under will be effective from August 04, 2014,” it said. 

 

The companies included in the revised list include Tijaria Polypipes Ltd, Goenka Diamond & Jewels Ltd, Orient Paper & Industries Ltd and Ganesh Benzoplast Ltd.

 

The exchange has said that stocks from two groups would have the new revised circuit filters or their current circuit filter of 5%, whichever is lower. 

 

“Please note that scrips in T and Z group will continue to attract a circuit filter of 5% or lower, as applicable,” it said. 

 

The ‘T’ group stocks refers to stocks which are only allowed to be traded on a delivery-basis, unlike most well-traded stocks, where investors can take buy a certain number of shares, sell a certain and only settle the net effect of these transactions. 

 

The ‘Z’ group includes companies which have not complied with their listing agreement, settled investor complaints or not made arrangements for dematerialising their shares so that investors can hold it in electronic form, instead of paper certificates.