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BSE to introduce index-based circuit breaker from Jul 2

The Bombay Stock Exchange is to clamp index-based market wide circuit breaker system to check volatility from July two, coinciding with introduction of rolling system.

The circuit breakers would apply at three stages of the index movement, either ways at 10 per cent, 15 per cent and 20 per cent, BSE said in a release in Bombay on Friday.

Filters would bring about co-ordinated halt in all equity and equity based derivative markets and would be triggered by the movement of either BSE-30 index or National Stock Exchange S&P CNX nifty, whichever is breached earlier, BSE said.

The plan was being implemented based on Securities and Exchange Board of India circular for circuit filters, BSE said.

The absolute points of sensex variation, which would trigger circuit breaker between July 2 and September 28 are 350 (for 10 per cent), 525 (for 15 per cent) and 700 (for 20 per cent), it said.

These triggers were calculated on the basis of Friday's close of 3456.78 points, it said.

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