MARKET WIDE CIRCUIT FOR NIFTY & SENSEX
(for Quarter : 1st October 2007 to 31st December 2007)
The Exchange implements on a quarterly basis (vide SEBI circular
SMDRPD/Policy/Cir-37/2001 dated June 28, 2001) the index based market wide
circuit breaker system. The system is applicable at three stages of the
index movement either way at 10%, 15% and 20%. This circuit breaker brings
about a coordinated trading halt in all equity and equity derivative markets
nationwide.
The market wide circuit breakers would be triggered by movement of either
SENSEX or the NSE S&P CNX Nifty whichever is breached earlier.
- In case of a 10% movement of either of these indices, there would
be a 1-hour market halt if the movement takes place before 1 p.m. In case
the movement takes place at or after 1 p.m. but before 2.30 p.m. there will
be a trading halt for 1/2 hour. In case the movement takes place at or after
2.30 p.m. there will be no trading halt at the 10% level and the market will
continue trading. - In case of a 15% movement of either index, there will be a 2-hour
market halt if the movement takes place before 1 p.m. If the 15% trigger is
reached on or after 1 p.m. but before 2 p.m., there will be a 1 hour halt.
If the 15% trigger is reached on or after 2 p.m. the trading will halt for
the remainder of the day. - In case of a 20% movement of the index, the trading will be halted
for the remainder of the day.
The percentages are calculated on the closing index value of the quarter.
These percentages are translated into absolute points of index variations
(rounded off to the nearest 25 points in case of SENSEX). At the end of each
quarter, these absolute points of index variations are revised and made
applicable for the next quarter.
On September 28, 2007, the last trading day of the quarter, SENSEX closed at
17291.10 points. The absolute points of SENSEX variation (over the previous
day’s closing SENSEX) which would trigger market wide circuit breaker for
any day in the quarter between 1st October 2007 and 31st December
2007would be as under:
| Percentage (+/-) | Equivalent Points |
| 10% | 1725 |
| 15% | 2600 |
| 20% | 3450 |
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