BSE and NSE have put a price band of 10 per cent on share movements of four firms – Essar Oil, Suzlon Energy, Educomp and CORE Education – as part of preventive surveillance measures.
The price band will be applicable for trading in the four stocks with effect from April 2. The decision to limit any upward or downward movement in their share prices to a maximum of 10 per cent has been taken by the the stock exchanges in consultation with market regulator Sebi.
In separate notices, NSE and BSE said that a fixed price band of 10 per cent on these four stocks is being imposed as part of a "preventive surveillance measure and to ensure market safety and safeguard the interest of the investors".
The decision was taken in consultation with market regulator Securities and Exchange Board (Sebi), and the action will be reviewed periodically, they added.
With an aim to prevent any systemic risks arising out of erroneous trades or stock manipulations, the market regulator Sebi late last year asked the stock exchanges to put in place a system for 'dynamic price bands'.
These dynamic price bands, which are generally referred to as dummy filters or operating range, prevent acceptance of orders for execution that are placed beyond the price limits set by the stock exchanges.
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