NSE to remove price bands of six cos from Tuesday
Mumbai: Leading bourse National Stock Exchange (NSE) will remove price bands from securities of six companies, including Engineers India and Oil India, 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 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) and Shipping Corporation of India (SCI) and Gujarat Mineral Development Corporation Ltd (GMDC).
"Based on surveillance review, it has been decided that no band will be applicable to these securities with effect from April 2, 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.