BSE tweaks circuit limit for IL&FS Investment Managers, 4 others

Leading exchange BSE Wednesday revised the circuit limit for the shares of IL&FS Investment Managers and four other companies to curb excessive volatility in their prices.

The new limits, effective Thursday, will ensure stock prices do not fluctuate beyond a prescribed level during a session.

In a notice, the BSE said trading members of the exchange are informed that the price band has been revised from existing levels in five scrips with effect from October 4.

According to the notice, a circuit limit of 5 per cent has been set for IL&FS Investment Managers. A similar limit has also been fixed for Hindusthan National Glass & Industries and Southern Latex.

On Monday, the government superseded the board of infrastructure conglomerate IL&FS against the backdrop of debt defaults by some of its group entities that triggered fears of liquidity crunch.

As per its latest balance sheet, IL&FS Group has infrastructure and financial assets exceeding Rs 1,15,000 crore and is facing tremendous debt pressure and struggling to service around Rs 91,000 crore in debt.

Besides, a price band of 10 per cent has been set for R P P Infra Projects and Universal Autofoundry.

Circuit filter mechanism is used by the BSE to keep in check excessive volatility in a scrip. It is the maximum fluctuation that is allowed in a stock in a day.