BSE has introduced additional price band to be applicable weekly, monthly, quarterly and yearly for stocks. At present, stocks have daily price bands which restrict price movement, either up or down, beyond a certain limit.
Currently, stocks have a daily price band of 20%, 10%, 5% and 2%. Additionally stocks will now have to follow price bands on a weekly, monthly, quarterly and yearly basis. Stocks within the 20% band will have to adhere to a 60% up or down price band, which means that the price of the stock can rise or fall by only 60% in a week. Similarly, in a month, the stock cannot increase or decrease by 100%, in a quarter not more than 200% and not more than 400% on a yearly basis.
These measures have been taken to counter volatility in the markets, exchange officials said.
For stocks in the 10% daily band, the weekly band has been fixed at 30%; monthly band at 60%. On a quarterly basis the stock cannot move beyond 100% and not beyond 200% in a year. Stocks in the 5% daily band can increase or decrease by 100% in a year and 60% in a quarter. Those with a 2% daily band can rise or fall by 50% each year and 30% per quarter.
You can mail at bse.surv@bseindia.com by rising voice against this price restriction.
To avoid above scenario investor can execute trades on NSE for the stocks listed on BSE as well as NSE.
Usefull information sir...thanks.
ReplyDeleteBSE is oldest stock exchange of Indian stock market. Price cap regulations sets a cap on price which utility provider can change and it can no go beyond it. Depending on economic conditions and other important factors this price cap is fixed. One can use financial advisory services to trade with precise levels in market.
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