x

What Is Index-based Marketwide Circuit Breaker And How It Is Applied?

Home »  Equity »  What Is Index-based Marketwide Circuit Breaker And How It Is Applied?
What Is Index-based Marketwide Circuit Breaker And How It Is Applied?
Yagnesh Kansara - 13 March 2020

Mumbai, 13 March 2020: The market-wide circuit breaker system of BSE and NSE applies at three stages of the index movement, either way at 10per cent, 15 per cent and 20 per cent. These circuit breakers bring about a coordinated trading halt in all equity and equity derivative markets nationwide.

The trigger limits and the respective halt duration:

10 per cent movement before 1 pm - trading halt of 45 minutes

10 per cent movement at or after 1 pm to 2.30 pm - trading halt of 15 minutes

10 per cent movement at or after 2.30 pm - no halt15 per cent movement before 1 pm - trading halt of 1 hour 45 minutes

15 per cent movement At or after 1 pm before - trading halt of 2 pm 45 minutes

15 per cent movement - On or after 2 pm - Trading halt for the remainder of the day

20 per cent movement any time of the day - Trading halt for the remainder of the day

BSE and NSE compute the index circuit breaker limits for 10 per cent, 15 per cent and 20 per cent levels on a daily basis based on the previous day's closing level of the index rounded off to the nearest tick size.

For example, on NSE, based on Nifty 50's closing of 9,590 on 12th March, Nifty's circuit filter trigger limit (movement either side) for Friday was 10 per cent (959 points), 15 per cent (1,438 points) and 20 per cent (1,918 points).

Markets Saw Highest Intraday Loss After M-Cap Fell By Rs 11 Lakh Crore
In A Historic Volatile Session Circuit Breakers Applied In 12 Years

Related Articles