BSE Resets Circuit Limit Of Patel Engineering, Seven Other Firms

New Delhi: To curb excessive volatility, top stock exchange BSE on Tuesday tweaked the circuit limit for share movement of Patel Engineering and seven other companies.

The new limits, effective Wednesday, will ensure stock prices do not go up or down beyond a level during a session. 

Circuit filter mechanism is used by stock exchanges to keep excessive volatility in check. It is the maximum fluctuation that is allowed during trading, which gets suspended if the permissible limit is hit in either direction.

In a circular, the exchange said it has set a circuit limit of 10 per cent for Patel Engineering.

It has also fixed a limit of 10 per cent for Escorts Finance, SVP Global Ventures, Mega Nirman & Industries, Dynacons Technologies and Lakshmi Overseas Industries. 

A limit of 5 per cent has also been set for two companies - Donear Industries and REI Six Ten Retail.

"Trading members of the exchange are hereby informed that the circuit filters has/have been changed from their existing levels...in the scrips (eight) with effect from September 7, 2016," BSE said.