(Applicable to Securities exclusively traded at BSE)
Exchange had introduced periodic price bands for the securities that are exclusively traded at the Exchange. The applicable periodicity and corresponding price bands were specified in its notice nos. 20150806-24 dated August 06, 2015, 20150930-36 dated September 30, 2015, 20151203-12 dated December 03, 2015 and 20160129-22 dated January 29, 2016 and 20170310-21 dated March 10, 2017 are as under.
Note - for lower price bands (downward limits), please refer point no. 1 below
In addition to the above, for monthly, quarterly and yearly price bands, a factor of 200 % of S & P BSE Midcap Index movement (subject to minimum 2% movement) shall be applied to take into account the overall movement in the market. This factor shall be added in the direction of index movement (rounded off to the nearest number) and threshold of the opposite direction will remain unchanged.
A brief primer on periodic price band mechanism and related rules is given as under.
- 1. A price band value on the lower side cannot be specified in negative. Hence, in such cases, applicable tick size of a security shall be taken as the minimum possible value as the lower limit of a price band, irrespective of the value calculated as per downward % slab.
Example - For a security having tick size as 1 paisa, the lowest value possible for individual price bands shall be 1 paisa and securities having tick size as 5 paise shall have lowest possible value as 5 paise.
- 2. From the calculated individual lower and upper price limits
for all periods (daily / monthly / quarterly / yearly),
the Final Upper DPR (Daily Price Range) and Final Lower DPR shall
be arrived based on the following rule
- Final Upper DPR shall be the "Minimum of all individual Upper Price limits"
- Final Lower DPR shall be the "Maximum of all individual Lower Price limits"
- 3. The reference price for setting up periodic price bands shall be as follows:
||Previous closing price
||Whenever there is no trading on the relevant day, previous close price as available shall be considered as a reference price.
||Close price of last trading day of the calendar month
||Close price of last trading day of the preceding quarter
||Close price of last trading day of the preceding year i.e. September 30th.
- 4. In case of downward revision in daily price bands i.e. from 20% to 10 % or 10% to 5 % or 5 % to 2 % as the case may be, the corresponding daily, monthly limits shall be revised based on the revised daily price band. The quarterly and yearly limits shall remain static at the initially set highest level till its next review date.
- 5. In case of downward revision in daily price bands, if Upper DPR limit is lower than its close price or lower DPR limit is higher than the close price, then the close price shall be considered as the corresponding Upper DPR limit or Lower DPR limit respectively.
- 6. In cases of upward revision in daily price band all individual lower and upper price bands for all periods (daily / monthly / quarterly / yearly) shall be revised based on the new revised daily price band subject to them not breaching their Yearly and Quarterly price limit already set on relevant reference prices applicable at the time of setting / review of Yearly and Quarterly periodic price bands.
- 7. For securities where corporate action is effected, upper & lower periodic price bands shall be revised by applying the Adjustment Factor to the relevant reference rates.
- 8. For securities trading below Re.1/-, there may be a situation wherein the computed higher and lower side price limits may be same resulting in no price movement in the security. In order to avoid such situation, the upper limit shall be adjusted one tick size to provide the movement in the respective securities.
The daily periodic price bands applicable is given below (price bands applicable for T+1 day shall be made available on T day EOD).
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