Market structure Circuit limits

Circuit limits / price bands

From WebNotes, a public knowledge base. Last updated . Reading time ~2 min.

Circuit limits (price bands) cap a scrip’s daily price movement at a defined percentage. For the full framework, see Circuit filters NSE BSE .

Standard bands

BandUsed for
2%Heavily surveilled scrips
5%Some surveilled
10%Mid-cap default
20%Large-cap default

Effect

  • Hit upper circuit: Stock can’t trade higher than the limit today.
  • Hit lower circuit: Stock can’t trade lower today.
  • Locked at circuit: Limited to existing queued orders.

See also

External references

References

  1. NSE India, Price band framework, nseindia.com.
  2. SEBI, Circuit filter framework, sebi.gov.in.

Reviewed and published by

The WebNotes Editorial Team covers Indian capital markets, payments infrastructure and retail investor procedures. Every article is fact-checked against primary sources, principally SEBI circulars and master directions, NPCI specifications and the official support documentation published by the intermediary in question. Drafts go through a second-pair-of-eyes review and a separate compliance read before publication, and revisions are tracked against the SEBI and NPCI rule changes referenced in the methodology section.

Last reviewed
Conflicts of interest
WebNotes is independent. No relationship with any broker, registrar or bank named in this article.