News Topical, Digital Desk : The Bombay Stock Exchange (BSE) has decided to implement revised price bands on the shares of 37 companies, effective November 17, 2025. This move aims to control unusual trading activity and protect investors from potential risks. The BSE periodically identifies stocks that experience sudden, sharp fluctuations in price or volume. In such cases, the exchange takes necessary action under its regular surveillance mechanism. This could involve reducing the price bands of certain stocks by 2%, 5%, or 10%.
BSE's surveillance measures include not only changing the price band but also placing a stock in the trade-to-trade segment, imposing special margins, or suspending the stock or member if necessary. A price band is set for each stock to prevent sudden and excessive increases or decreases in its price. If a stock exhibits unusual volatility, a stricter price band is imposed.
When is a special margin imposed? BSE imposes a special margin when a stock's price or trading volume experiences unusual increases. This margin can be 25%, 50%, or 75%. Its purpose is to protect investors from potential losses due to rumors or speculation.
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