This is in reference to Exchange Notice no. 20240531-2 dated May 31, 2024 and in partial modification to master circular no. 20240430-56 dated April 30, 2024 the Exchange hereby notifies the below update for relaxing the dynamic price bands:
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Existing criteria
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In the event of a market trend in either direction, the dynamic price band shall be relaxed by 5% at a time in the direction of the price movement during the day in co-ordination with the other Exchange as follows:
b. If the last trade in the contract occurs at 9.90% and more of the base price
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Revised criteria
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In the event of a market trend in either direction, the dynamic price band shall be relaxed at a time in the direction of the price movement during the day in co-ordination with the other Exchange as follows:
b. If the last trade occurs at 9.90 % or more of the base price, the dynamic price band shall be relaxed to 15%. Subsequently, if the last trade occurs at 14.90% or more then the same would be relaxed to 20% and so on by relaxing dynamic price band in the following manner:
i. For the first two instances of flexing, the price band would be flexed by 5% of yesterday’s closing price after the cooling off period. This cooling off would be 15 minutes if conditions for flexing are satisfied before last half an hour of trading and 5 minutes if conditions for flexing are satisfied in the last half an hour of trading.
ii. For subsequent two instances of flexing, price band would be flexed by 3% of yesterday’s closing price after the cooling off period of 30 minutes.
iii. For subsequent instances of flexing, price band would be flexed by 2% of yesterday’s closing price after the cooling off period of 60 minutes.
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For the purpose of relaxing the dynamic price bands, the Exchange will take into account minimum trades, UCCs & TMs on each side of the trade as per Notice no. 20240531-2 dated May 31, 2024.
In addition to the above, when conditions for flexing the price bands are satisfied on either underlying in cash market or current month futures contracts on any exchange, the price band would be flexed for the scrip and all the futures contracts on this scrip at the end of subsequent cooling off period.
In exceptional circumstances, all the exchanges shall consult and relax the dynamic price band.
Please note all other provisions as mentioned in the aforesaid circulars shall remain unchanged.
The above shall be effective in Live from August 19, 2024 and shall be available for testing in mock being conducted on August 17, 2024.
In case of any clarifications, members may write to us at bse.surv@bseindia.com
For & On behalf of BSE Ltd.
Sachin Lad Harish Kadam
Assistant General Manager Manager
Surveillance Surveillance
August 16, 2024 |