BSE sets circuit breaker for Oct-Dec quarter

The Bombay Stock Exchange (BSE) on Friday announced index-based market-wide circuit breaker for October-December quarter this year.

The market-wide circuit breakers would be triggered by movement of either BSE Sensex or the NSE S&P CNX Nifty whichever is breached earlier, a BSE release said.

The BSE said that the index-based market-wide circuit breaker system is implemented on a quarterly basis.

The system is applicable at three stages of the index movement either way, at 10 per cent, 15 per cent and 20 per cent. It brings about a coordinated trading halt in all equity and equity derivative markets nationwide, the release said.

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 pm. In case the movement takes place at or after 1 pm, but before 2.30 pm, there will be a trading halt for half an hour. In case the movement takes place at or after 2.30 pm, 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 two-hour market halt if the movement takes place before 1 pm. If the 15 per cent trigger is reached on or after 1 pm, but before 2 pm, there will be a one-hour halt. If the 15 percent trigger is reached on or after 2 pm, 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.

Percentages are calculated on the closing index value of the quarter. These are translated into absolute points of index variations (rounded off to the nearest 25 points in case of the Sensex).

At the end of each quarter, these absolute points of index variations are revised and made applicable for the next quarter, the release said.