The Bombay Stock Exchange (BSE) announced a Revised Price Band on shares of 31 companies from December 1, 2025. The exchange aims to control unusual trading activities and protect investors from potential risks. BSE periodically selects stocks showing sudden sharp price or volume fluctuations for action under its regular surveillance mechanism. Under this, the price bands of some shares may be reduced by 2%, 5%, or 10%.
In addition to changes in price bands, BSE’s surveillance measures may include placing a stock in the trade-to-trade segment, applying special margins, or suspending a share or member if necessary. Each stock has a price band set to prevent sudden and extreme price fluctuations. If a stock exhibits abnormal volatility, a strict price band is imposed on it.
When is special margin applied? When a stock shows unusually rapid price or trading volume changes, BSE imposes a special margin. This margin can range from 25%, 50%, to 75%. Its purpose is to protect investors from potential losses due to rumors or manipulations.
BSE plays a crucial role in maintaining transparency, preventing price manipulation, and safeguarding investors’ interests in the market. Disclaimer: The advice shared on CNBC TV18 Hindi/CNBC Awaaz is personal views of experts/brokerage firms. The website/management is not liable for it. Always seek financial advice from a certified expert before investing.
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