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
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
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.
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I am speaking from experience and my own personal views above - I am not an advisor, nor an expert.
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.