Mumbai: Leading bourse National Stock Exchange (NSE) will remove price bands from securities of six companies, including Engineers India Ltd. and Oil India Ltd., from Tuesday.

The decision to remove price bands, which limit the maximum upward or downward movement in a share during a day’s trading within a pre-determined range, has been taken by the NSE after a periodic surveillance review.

The six companies whose stock would not be subjected to a price band also include Bharat Electronics Ltd. (BEL), Container Corporation of India (CONCOR), Shipping Corp. of India (SCI) and Gujarat Mineral Development Corp. Ltd. (GMDC).

“Based on surveillance review, it has been decided that no band will be applicable to these securities with effect from 2 April 2013," NSE said in a circular. “The said action will be reviewed periodically," it added.

Price bands serve as “circuit breakers" to prevent extreme fluctuations in market prices. The price bands are set to restrict the movement of stock prices (either up or down), of listed securities. This also helps curb possible manipulation in share prices by operators.