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If you dubbed Wednesday’s trading as a bland fare, hold your tongue! There is spice in the top gainers’ list. Prudential ICICI SPIcE, the exchange traded fund (ETF), the only one mounted on the Sensex, today closed 20 per cent up. In the process, it also breached its applicable circuit of 10 per cent.

The ETF, launched in 2003 January, was suspended from trading once in the past for erratic price movement. The BSE revoked the suspension of trading in units of Prudential ICICI SPIcE in May 2006, with an important rider — the applicable circuit limit will be 10 per cent of the base price. The exchange had also listed a few distinct “modalities of trading”, which came into effect from May 18 of 2006.

According to Value Research, the movement was surprising by all means. “Did the exchange’s technology platform fail to take note of the breach? It appears so. We had recently noted unusual movements too in Templeton Capital Guarantee Fund units, which are also listed,” said Mr Dhirendra Kumar, CEO of the fund monitoring organisation.

The sudden upsurge could perhaps be explained by circular trading by some with an eye to reap tax benefit before the end of the fiscal. The current net asset value of the ETF is Rs 198.99. The current price is also out of sync with its NAV per unit.

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