BSE, NSE fix new circuit filter limits

A movement of 1,575 points in the Sensex and 470 points in the Nifty would bring trading to a halt through the current quarter ending June, as per the new circuit filter limits set by the country's two premier bourses BSE and NSE. This circuit w ould be applicable on movements on either side of gain or loss, circulars on both the bourses said.

While a movement of 1,575 points in Sensex or 470 points in Nifty, representing 10 per cent of the closing value of the respective indices in the previous quarter, would bring about a halt for one hour, the halt periods would be greater in case of bigger falls after the trading resumes. The exchanges fix the circuit limits at the beginning of every quarter.

According to the circuit-breaker system, a 10 per cent movement before 1300 hrs triggers a one-hour halt, a gain or loss of 15 per cent before 1300 hours halts the trading for two hours, while a movement of 20 per cent leads to the trading being halted f or the remainder of the day.

The exchanges have fixed 10-per cent circuit at 1,575 points, 15 per cent circuit at 2,350 points and 20 per cent at 3,125 points for the Sensex. Similarly, for the Nifty, the points equivalent to 10 per cent circuit are 470, for 15 per cent it is 710 po ints and for 20 per cent, it has been fixed at 950 points, the circular added. The percentages are calculated on the closing index value of the previous quarter.

These percentages are translated into absolute points of index variations (rounded off to the nearest 25 points in case of Sensex). At the end of each quarter, these absolute points of index variations are revised and made applicable for the next quarte r. The Sensex had ended the last quarter ended March 31 at 15,644.44 points.