Circuit Breakers

The index-based market-wide circuit breaker system applies at 3 stages of the index movement, either way viz. at 10%, 15% and 20%. These circuit breakers when triggered bring about a coordinated trading halt in all equity and equity derivative markets nationwide. The market-wide circuit breakers are triggered by movement of either the BSE Sensex or the NSE S&P CNX Nifty, whichever is breached earlier.

� In case of a 10% movement of either of these indices, there would be
a one-hour market halt if the movement takes place before 1:00 p.m.
In case the movement takes place at or after 1:00 p.m. but before
2:30 p.m. there would be trading halt for � hour. In case movement
takes place at or after 2:30 p.m. there will be no trading halt at the
10% level and market shall continue trading.

� In case of a 15% movement of either index, there shall be a two-hour
halt if the movement takes place before 1 p.m. If the 15% trigger is
reached on or after 1:00 p.m., but before 2:00 p.m., there shall be a
one-hour halt. If the 15% trigger is reached on or after 2:00 p.m. the
trading shall halt for remainder of the day.

� In case of a 20% movement of the index, trading shall be halted for
the remainder of the day.

These percentages are translated into absolute points of index variations on a
quarterly basis. At the end of each quarter, these absolute points of index
variations are revised for the applicability for the next quarter. The absolute
points are calculated based on closing level of index on the last day of the
trading in a quarter and rounded off to the nearest 10 points in case of S&P
CNX Nifty.