BSE resets circuit limit for 10 firms to check swings

To curb excessive volatility, leading stock exchange BSE today revised the circuit limit for share movement of as many as ten companies, including Vista Pharmaceuticals.
The new limits, which ensure stock prices do not go up or down beyond a level during a trading session, will be effective tomorrow.
Circuit filter mechanism is used by stock exchanges to check excessive volatility in markets.
It is the maximum fluctuation in price allowed during trading, which gets suspended if the maximum permissible limit is hit in either direction.
The share price of six firms -- Vista Pharmaceuticals, Flex Foods, Electrotherm (India), Surat Textile Mills, Garden Silk Mills and Sybly Industries -- cannot change by more than 10 per cent in a day, BSE said in a circular.

It has also set an upper limit of 5 per cent for Shree Rama Multi-Tech, Delta Industrial Resources, Fiberweb (India) and Zicom Electronic Security System.
"Trading members of the exchange are hereby informed that the circuit filters has/have been changed from their existing levels... In the scrips (10) with effect from June 14, 2016," BSE said.