Sebi specifies 20% circuit for stocks in index derivatives

Mumbai: The Securities and Exchange Board of India (Sebi) on Thursday specified a circuit limit of up to 20% for all publicly traded stocks that are included in any index derivatives. The market regulator said the move is aimed at protecting stocks against excessive volatility risks.

Currently, stock exchanges implement appropriate individual stock-wise price bands in either direction for all stocks that are on normal rolling settlement and do not have their stock-based derivatives.