The stock exchanges have decided to apply circuit filters on derivatives and have reduced them to 5 per cent on small scrips in the "T", "TS" and "Z" groups. This is aimed at reducing the high volatility in the bull market.

Besides, four other scrips belonging to the "T" and "B1" groups, (Crest Animation, Hindustan Organic Chemicals, State Bank of Travancore and State Bank of Bikaner & Jaipur), have been brought under the circuit umbrella of 5 per cent in the cash and the derivatives segment.

The decision to reduce the daily maximum permissible limit of trading in the cash markets has been taken after a meeting with the Securities and Exchange Board of India. A normal circuit filter band of 20 per cent will be applicable for 42 derivatives, including those of four banks, from tomorrow.

With a view to ensuring market safety and safeguarding investor interest, the Clearing Corporation has made it mandatory for investors to pay 100 per cent upfront margin rates (VaR Margin+Extreme Loss Margin) for 30 other scrips from September 26.

As many as 262 non-A group stocks touched their life-time highs at the Bombay Stock Exchange yesterday.  These included many small and mid-cap stocks. Since the start of the year 2005, the non-A group stocks have raised value at a very high pace.

The market cap of non-A group stocks, traded under the B1, B, S, TS, T and Z groups, has gone up from 14 per cent in September 2004 to 24 per cent in September 2005.