New Delhi: The BSE on Wednesday revised the circuit limit for the shares of IL&FS Investment Managers and four other companies to curb excessive volatility in their prices.

The new limits, effective Thursday, will ensure stock prices do not fluctuate beyond a prescribed level during a session.

According to the notice issued by the BSE, a circuit limit of 5% has been set for IL&FS Investment Managers. A similar limit has also been fixed for Hindusthan National Glass & Industries and Southern Latex.

On Monday, the government superseded the board of infrastructure conglomerate IL&FS against the backdrop of debt defaults by some of its group entities that triggered fears of liquidity crunch.

According to its latest balance sheet, IL&FS Group has infrastructure and financial assets exceeding 1,15,000 crore and is facing tremendous debt pressure and struggling to service around 91,000 crore in debt.

Besides, a price band of 10% has been set for RPP Infra Projects and Universal Autofoundry.

Circuit filter mechanism is used by the BSE to check excessive volatility in a scrip. It is the maximum fluctuation that is allowed in a stock in a day.

This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.

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