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New circuit breaker norms from October 1

BS Markets Bureau

Market wide circuit breakers will be applied in three stages of 10 per cent, 15 per cent, and 20 per cent movement of index from Monday.

The circuit breakers will be triggered by movement of either the Bombay Stock Exchange Sensex or the National Stock Exchange S&P CNX Nifty, whichever is breached earlier.

According to the Securities and Exchange Board of India circular, the market operations will be stopped for one hour in case a movement of 10 per cent (equivalent to 275 points in Sensex) in either of indexes take place before 1 PM.

The stoppage will be only for half an hour between 1PM and 2.30 PM and there will be no halt after 2.30 PM in case of 10 per cent movement.

Similarly, in case of 15 per cent (equivalent to 425 points in Sensex) movement in either of index before 1 PM there will be 2 hour halt, there will be one hour halt between 1-2 PM. Trading will be halted for the remainder of the day in case the index moved 15 per cent after 2 PM.

In case of a 20 per cent (equivalent to 550 points in Sensex) movement of either of the index, the trading will be halted for the remainder of the day at both the exchanges. The market wide circuit breakers will be applicable till December 31 beginning October 1.

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