BSE halves circuit limit for MCX shares

The Bombay Stock Exchange, on Friday, decided to halve the circuit limit for the shares of Multi Commodity Exchange (MCX), capping its maximum movement in a day at 10 per cent.

The change will be effective from August 5 and follows a plunge in the share price of the company in the past two days.

Existing levels

In a circular, the exchange said “the circuit filters have been changed from their existing levels in the scrip (of MCX) with effect from August 5.’’ Earlier, MCX shares were allowed an upward or downward movement of 20 per cent in a day.

The exchanges generally lower the circuit filter of a stock as part of their surveillance mechanism to avoid excessive volatility in the share price.

Derivative contracts

Meanwhile, the NSE said the derivative contracts in the underlying Financial Technologies securities had crossed 95 per cent of the market-wide position limit on August 1. Financial Technologies is the promoter of MCX.

“It is hereby informed that all clients/members shall trade in derivative contracts of FINANTECH by offsetting their existing positions till the open interest comes down to 80 per cent of the market wide position limit,” a NSE statement said.