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Our Bureau

Chennai, Jan. 4 The Bombay Stock Exchange and the National Stock Exchange have announced the index-based, market-wide circuit breaker for the quarter January-March.

The circuit breaker system is applicable at three stages of the index movement either way at 10 per cent, 15 per cent and 20 per cent. Accordingly the percentages are calculated on the closing index value of the quarter.

As the NSE Nifty closed at 2959.15 on December 31, the last trading day of the previous quarter, the market-wide circuit breaker for any day in the quarter between January 1 and March 31 would be triggered only if the index moves by 300 points (10 per cent), 440 points (15 per cent) and 590 points (20 per cent).

Similarly, the BSE would suspend trading only if the Sensex moves by 970 points (10 per cent), 1450 points (15 per cent) and 1925 points (20 per cent). The BSE Sensex had closed at 9647.31 on December 31.

In case of a 10 per cent movement of either of these indices, there would be a one-hour market halt if the movement takes place before 1 p.m. In case the movement takes place at or after 1 p.m. but before 2.30 p.m., there will be a trading halt for half-an-hour. In case the movement takes place at or after 2.30 p.m., there will be no trading halt at the 10 per cent level and the market will continue trading.

In case of a 15 per cent movement of either index, there will be a 2-hour market halt if the movement takes place before 1 p.m. If the trigger is reached on or after 1 p.m. but before 2 p.m., there will be a one-hour halt. If the 15 per cent trigger is reached on or after 2 p.m., the trading will halt for the remainder of the day.

In case of a 20 per cent movement of the index, the trading will be halted for the remainder of the day.

According to SEBI directive, exchanges have to implement index-based, market-wide circuit breaker in compulsory rolling settlement.

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