Market structure Circuit breaker Market halt

Market-wide circuit breakers

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Market-wide circuit breakers are index-level triggers that pause the entire equity market on extreme moves. They prevent disorderly trading during major events.

Trigger levels

TriggerPause duration
10% index move (Nifty 50 or Sensex)45-minute trading halt
15% move105-minute halt
20% moveTrading halted for the rest of the day

The triggers apply both ways (up or down).

Historical activations

  • March 2020 COVID-19 crash: Multiple circuit triggers.
  • 2008 financial crisis: Multiple triggers.
  • Other rare events since 1999 when the framework was introduced.

In normal markets, circuit breakers rarely trigger.

When they apply

Time of dayPause length
Before 13:00Longer pause (intra-session reset)
13:00 to 14:30Standard pause
After 14:30Trading halted for the rest of day

Different timing windows have different pause durations.

During the pause

  • All open orders cancelled or paused.
  • Position MTM continues to be tracked.
  • News and order intent accumulate.
  • Market reopens with pre-open-style call auction.

See also

External references

References

  1. NSE India, Market-wide circuit breaker framework, nseindia.com.
  2. SEBI, Circuit breaker rules, sebi.gov.in.

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