This is in continuation to the Exchange notice no.20150806-24 dated August 06, 2015, and Exchange notice no.20150930-36 dated September 30, 2015, regarding Additional periodic Price Bands for the securities exclusively traded on BSE Trading Platform.
Trading members are hereby requested to note certain important updates/clarifications in respect of Additional Periodic Price Band framework as follows -
A. Important rules for calculating periodic price bands :
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 / weekly / monthly / quarterly / yearly), the Final Upper DPR (Daily Price Range) and Final Lower DPR shall be arrived based on the following rule –
a. Final Upper DPR shall be the “Minimum of all individual Upper Price limits”
b. 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:
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Price band
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Reference price
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Remarks
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Daily
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Previous closing price
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Whenever there is no trading on the relevant day, previous close price as available shall be considered as a reference price.
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Weekly
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Close price of last trading day of the preceding week
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Monthly
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Close price of last trading day of the calendar month
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Quarterly
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Close price of last trading day of the preceding quarter
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Yearly
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Close price of last trading day of the preceding year i.e. September 30th.
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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, weekly, 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 it’s 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 / weekly / 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.
B. Introduction of a new file on periodic price bands
Trading Members of the Exchange are hereby informed that based on feedback received from Market Participants, the Exchange has decided to publish the applicable periodic price bands on daily basis for all applicable securities w.e.f. December 07, 2015. The same shall be available in form of a separate file on BSE Website under following section:
· Members à information for Members à Periodic Price Bands
· Investors à Regulatory à Periodic Price Bands
For any clarifications, trading members are advised to contact on 022-22725092 / 022-22725093 / 022-22725001.
For & on behalf of BSE Ltd.
Rajesh Saraf Usha Sharma
Sr. General Manager Dy. General Manager
Surveillance & Supervision Surveillance & Supervision
December 03, 2015. |