What are circuit breakers?
A circuit breaker is a tool to control trading of shares. Statutory bodies governing the stock exchanges have set a limit on the maximum rise or fall in stock prices. This is done to check the volatility in the market, to arrest panic and to keep the market under some control. The regulatory authorities, i.e. SEBI along with the Stock Exchanges, have set a limit on the price movement. The circuit is thus the band between the lower and upper limits.
