Sebi revises circuit breaker rules with regard to coordinated trading halt

Index-based circuit breakers to be calculated based on previous day's closing level of the index

Securities & Exchange Board of India (Sebi) on Tuesday, 3 September 2013, said it has revised the rules for circuit breaker-induced trading halts for India's two main equity indexes viz. the Sensex and the Nifty, aiming to contain volatility. Stock exchanges would now calculate 10%, 15% and 20% circuit breaker limits of market-wide index variation based on the previous day's closing levels on the Sensex and the Nifty. Currently, the NSE and BSE exchanges calculate an absolute value for the circuit breaker limit using the 10%, 15% and 20% price band movement based on the index's quarter-end closing level.

Resumption of trading after a halt triggered by the circuit breaker would now be followed by a 15-minute pre-open call auction session, Sebi said in a circular. The new rules will come into effect from 1 October 2013.

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