The Exchange has implemented index-based market-wide circuit breakers with effect from July 02, 2001 based on SEBI Circular No. SMDRPD/Policy/Cir-37/2001 dated June 28, 2001. SEBI vide its Circular no. CIR/MRD/DP/ 25 /2013 dated September 03, 2013 has partially modified the earlier circular. The revised guidelines are as below.
The index-based market-wide circuit breaker system applies at 3 stages of the index movement, either way viz. at 10%, 15% and 20%. These circuit breakers when triggered bring about a coordinated trading halt in all equity and equity derivative markets nationwide. The market-wide circuit breakers are triggered by movement of either the BSE Sensex or the Nifty 50, whichever is breached earlier. In this regard the Exchange has issued a circular no 85/2013 (Download No-24709) dated October 11, 2013.
The market shall re-open, after index based market-wide circuit filter breach, with a pre-open call auction session. The extent of duration of the market halt and pre-open session is as given below:
|Trigger limit||Trigger time||Market halt duration||Pre-open call auction session post market halt|
|10%||Before 1:00 pm.||45 Minutes||15 Minutes|
|At or after 1:00 pm upto 2.30 pm||15 Minutes||15 Minutes|
|At or after 2.30 pm||No halt||Not applicable|
|15%||Before 1 pm||1 hour 45 minutes||15 Minutes|
|At or after 1:00 pm before 2:00 pm||45 Minutes||15 Minutes|
|On or after 2:00 pm||Remainder of the day||Not applicable|
|20%||Any time during market hours||Remainder of the day||Not applicable|
Exchange shall compute the Index circuit breaker limits for 10%, 15% and 20% levels on a daily basis based on the previous day's closing level of the index rounded off to the nearest tick size.
Daily Market Wide Circuit Filter