The Bombay Stock Exchange (BSE) has decided to lower circuit limit of stocks of 12 companies, including those which were hammered in the mid-cap crash on Monday. The changes would be effective from Tuesday (February 26), BSE said in a circular.
BSE has capped the maximum movement in a day at 10 per cent for five stocks --Aanjaneya Lifecare, Bhagwati Banquets & Hotels, Gemini Communications, Sudar Industries.
Besides, companies such as D B Realty, 7seas Technologies, Bhoruka Aluminium, Broadcast Initiatives, Vardhman Polytex and W H Brady & Co Ltd would be allowed an upward or downward movement of five per cent in day.
BSE also said circuit limit of Jolly Plastic Industries would be two per cent. The exchanges generally lower the circuit filter of a stock as part of their surveillance mechanism to avoid excessive volatility in the share price.
Yesterday, about a dozen mid-cap and small-cap shares crashed, including Aanjaneya Lifecare which fell by 20 per cent, prompting market regulator Securities and Exchange Board of India (Sebi) to initiate a probe into panic selling triggered by speculation that pledged shares are being sold by certain entities.
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