MIS and CO positions when circuit limits are hit

Sun, 21 Jun 2026 00:00:00 +0000

When a stock locks at its circuit limit, an intraday MIS or cover order position on Zerodha usually cannot be squared off, because a circuit lock leaves only one side of the order book with no counter-orders to transact against, and the position then converts to a delivery trade carrying overnight risk, possible short delivery, and an exchange auction penalty. A circuit limit is the daily price band beyond which a scrip cannot trade; once price reaches it, the scrip freezes there until orders appear on the opposite side or the band is revised.

Circuit limits / price bands

Wed, 20 May 2026 00:00:00 +0000

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

Band	Used 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.

External references

References

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