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BSE Price bands



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Stock Exchanges use several mechanism to protect investors, particularly those of retail investors. T-group shares, Graded Surveillance Measures or GSM securities and S+ Framework are some examples by which stock exchange try to protect them.

Circuit revisions and price bands are ways by which stock exchanges try to curb operator play.

Brother then there's no restrictions in NSE listed coys?

I didn't notice for a particular coy where it's listed.....But I saw it in money control in general

Are you taking about the same thing what I understood? Or something else

Circuit limits such as 20%, 10%, 5% or 2% apply for both NSE and BSE listed companies. The price band restrictions that i mentioned above are for BSE-only listed companies.

Largecap stocks do not have circuit limits.

What is a Price band?

For BSE-only listed companies, the maximum allowed moment is determined by the price bands.

For example, there is a company called BASANT AGRO TECH (INDIA) LTD which is BSE-listed only.

http://www.bseindia.com/stock-share-price/basant-agro-tech-(india)-ltd/basantgl/524687/

If you visit the website, you will see its price bands.

i.e the share price can move only between the said price band.

This is mainly done to crub abnormal price moments and to limit operator activities. But still, a lot more has to be done. This is why i generally avoid BSE-only companies.

But UC and LC are there on NSE too!!

Yes. The UC and LC is always applicable to both NSE and BSE. But for BSE-only companies, along with the circuit limits, an additional price band system is applicable.

Question

Why the weekly price limit is more than monthly limit? Please find below the screen shot of BSE website of N R Agarwal stock.

There is an anomaly in the computation methodology. To sort out this issue, BSE said:

From the calculated individual lower and upper price limits for all periods (daily / weekly / monthly / quarterly / yearly), the Final Upper DPR (Daily Price Range) and Final Lower DPR shall be arrived based on the following rule

Final Upper DPR shall be the "Minimum of all individual Upper Price limits"

Final Lower DPR shall be the "Maximum of all individual Lower Price limits"

Why the price brands vary from share to share?

Different shares have different circuit limits (also called daily price band).

The applicable periodic price band will be determined by the circuit limit of a given share.

Example:

If a company share has a daily price band circuit limit as 20%, its weekly price band will be +/- 60%

The computation table is available at http://www.bseindia.com/investors/periodic_price_bands.aspx?expandable=5

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