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Our Bureau

Mumbai, March 10 The Bombay Stock Exchange has revised the circuit filters for more than 1600 stocks as part of their surveillance action.

The circuit filter that came into effect from Monday has been revised to 10 per cent for 1,118 companies, 5 per cent for 468 companies and to 2 per cent for 22 companies, the BSE said in a circular.

A circuit-breaker is a device that halts trading in a stock if the price changes by a pre-determined percentage on a given day. The stock exchanges have 2, 5, 10 and 20 per cent circuit breakers on certain stocks.

“Circuit filters are tightened to control the movement of scrips in times of high volatile markets,” said Mr Sanjay Someshwar, broker with Ventura Securities.

“In times of volatility, a reduced circuit filter means that the loss is minimal to the shareholders,” said a broker with a Mumbai-based broking firm.

“The stocks which are highly volatile and there is a lot of speculative activity in them, seem to have been put under the 2 per cent circuit filter,” he added.

The circuit filters are reduced in case of illiquid stocks or as a price containment measures. The circuit filters are reduced to 10 per cent, or 5 per cent or 2 per cent as the case may be, based on the criteria decided by the Market Surveillance Department.

No circuit filters are applicable on stocks on which derivative products are available and scrips which are liquid and included in indices.

Among the stocks which have come under the 10 per cent circuit filter are Adani Enterprises Ltd, Ajanta Soya Ltd, AksharChem (India) Ltd, Arvind Chemicals Ltd, Lanco Industries Ltd, Khandwala Securities Ltd, Kaveri Seed Company Ltd and Marg Constructions Ltd.

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