What are price bands?
The exchanges have fixed price bands for all t securities within which they can move within a day i.e. +-20%. In case of scrips on which derivatives products are available there is a price freeze of +/-20%. Orders outside the minimum and the maximum of the range are not allowed to be entered into the system. However in case of few specific scrips, from time to time the exchange has fixed price band of less than +/-20%. The previous day’s closing price is taken as the base price for calculating the price bands. In case a member wants to execute a trade beyond +/-20% freeze (derivative scrips) then he will have to request the exchange to relax the price freeze for his particular order.
The exchanges have fixed price bands for all t securities within which they can move within a day i.e +-20%. In case of scrips on which derivatives products are available there is a price freeze of +/-20%.Orders outside the minimum and the maximum of the range are not allowed to be entered into the system. However in case of few specific scrips, from time to time the exchange has fixed price band of less than +/-20%.The previous day’s closing price is taken as the base price for calculating the price bands. In case a member wants to execute a trade beyond +/-20% freeze (derivative scrips) then he will have to request the exchange to relax the price freeze for his particular order.
The exchanges have fixed price bands for different securities within which they can move within a day. Orders outside the minimum and the maximum of the range are not allowed to be entered into the system. As per SEBI directive, all securities traded below Rs. 10/- have a daily price band of 50%. All securities traded at or above Rs.10/- and below Rs.20/- have a daily price band of 25%. All securities traded at or above Rs 20/- have a daily price band of 8%. However, for some of the actively traded scrips which have hit the upper/lower price bands, the price bands can be further relaxed by the Exchange by another 8% after giving a cooling off period of 30 minutes (15 minutes in case the price band is hit in the last 30 minutes of the trading session for the day. The previous day’s closing price is taken as the base price for calculating the price bands. For example, Scrip XYZ having a closing price of Rs.100 for the previous trading day, goes up by 8% i.e. touches Rs.
The exchanges have fixed price bands for different securities within which they can move within a day. Orders outside the minimum and the maximum of the range are not allowed to be entered into the system. At present , there are 4 Price Bands decided by the exchange. Most securities have a 20% price band. Some securities have a price band of either 2%, 5% or 10%.
