What is upper circuit and lower circuit?

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24-06-2009
>take

What is upper circuit and lower circuit?

Hey Friends,

Can anybody give me an idea about what is upper circuit and lower circuit in share market? And what is the limit for this?

Thanks,
>Take
25-06-2009
CONFUSED

If in any day any stock price get increased by 5 - 10% (% defined by SEBI for each share) of the previous day price in a day than there is an upper circuit means that the trading for the stock is stoped for some time. Same is happen for lower circuit.
26-06-2009
Master

Quote:

Originally Posted by >take

Hey Friends,

Can anybody give me an idea about what is upper circuit and lower circuit in share market? And what is the limit for this?

Thanks,
>Take

The exchange has fixed circuit filters for the Sensex. If the index drops 10% before 1 PM then trading would be halted for one hour. If 10% drop is between 1-2:30 PM then trading to be halted for half an hour. If 10% drop after 2:30 PM then no halt in trading.

If in case index drops by 15% before 1 pm then trading to be halted for 2 hours. If 15% drop between 1-2 PM then trading to be halted for one hour. If 15% drop after 2 PM then trading to be halted for rest of the day.

In the case of 20% drop in the index then trading to be halted for the rest of the day.