Is there any rule for max gain of bse listed stocks on weekly, monthly and yearly basis?
I read somewhere about only BSE listed stocks that BSE has put cap on stocks that can gain on weekly, monthly and yearly basis. I am not sure about that. How that works.
Here is the reference: http://value-picks.blogspot.in/2015/08/bse-to-introduce-stringent-circuit.html?m=0
Thanks for the link but I am still unsure of it. I see Trigyn Technologies is still gaining.
Can you please tell me What can happen to Keerthi Industires?
What happens after 5% circuit stocks gain 60% in a quarter? Will it stay there for one quarter and buy and sell will happen at the max price or below that?
Do I have to wait possibly till 9 months just for 40% if price gained 60% in first quarter itself? In 5% circuity stocks, only 100% is the max gain in year.
“The provisions of aforementioned framework shall come in effect from October 1, 2015.” So, it will consider price from Oct, 1 only. Prior price rise wont be considered. I am finding very tough to digest this rule. Many companies comes to profit from loss and this rule looks very silly in many circumstances.
that’s because trigyn is listed on both NSE and BSE and this rule applies to “BSE only” listed companies. Clearly this is a very stupid thing to do and i hope this move encourages companies to list on NSE as well … also just like you have started calculating the maximum possible gains that can come in a stock, a lot of others would start doing it and this will only encourage trading. In my opinion we should all call at the numbers listed on that BSE notice and sound our displeasure to them.
I agree to your points.
Its more like BSE is indirectly encouraging trading on the exchange. Silly rule.
what are rules regarding change of circuit from 20% to 10% and then to 5% and vice versa.i mean for example- a stock after successive 20% circuit moves to 10% circuit then again after 10% uc it moves to 5% ,after that afterhow many days its 5% circuit will change to 20%
those rules are listed on BSE and its the same for last many years, so those rules are not really a problem i think. The issue is the upside cap that they have imposed. What it means is that no matter what, you cannot have more than 400% gains in a year from a stock. how sad.
can u tell me those rules,i even dnt know that
I feel that BSE is trying to reduce the losses to investors, caused by the selling spree that happens during times of crisis. Even though this safeguard is encouraging the short term (1Yr) trading.
We are seeing the upside a stock can go to 400%, but we all know, just a Random Walk phenomenon can make stock to touch -400%. The Exchange is reducing our Risk and in turn the returns are also reduced.
Say if a stock is 400 INR at year starting, and it climbs to 1600 INR by the year end. Then 1600 INR becomes the base line. So the next 400% jump can take it to 6400 INR in the year 2. It is only that, in Yr 1 the stock cannot reach 6400 INR. How this policy will be abused is yet to be seen.
May be we have to run some simulations and see. Views are welcome.
@CalMeK valid point!
What are the criteria/guidelines for getting listed on NSE?
As i can see there are lot of companies which are listed on BSE but not on NSE, I just want to know what prevents them from getting listed on NSE.
I am one of the biggest sufferer of this rule.
My investment in Axtel Industries, Amines & Plasti, Aimco , Vivid global all are in the same BSE league.
one can also attribute it to the fact that the BSE is home to a lot of “dabba” stocks, even the SME platform - most of the gains are from circular trading
Can some one explain in detail about how this periodic band works…
weekly and monthly cap I understood…and exactly matching with my calculations.
I could not understand Quarterly price band and yearly price band…
MY Questions are as follows…
1.since when Quarterly price band calculation starts…will it be from the day monthly price band applied or from the start of the month in which monthly price band has come into force or from 1st of OCT.2015…
here I want to take cupid as an example.
On 30th Sept. Price is 197.5
On 30th Oct. Price is 248.5
Now it is capped at 397.2 for this Nov.month.(wih 10% daily circuit limit)…This is exactly +60% of Oct.month closed price.
Now how to calculate Quarterly price cap in this case…
if it is from 1st of OCT…then for Quarterly limit should be 395 (100% of Sept.month closing price)…then how come it is capped at 397.2 presently for this month…
even Spice jet case also I am getting confused with these price bands…
it has grown from 27 to 69 from sept end.(with 10% circuit limit) .its more than 100 appreciation from 1st of OCT…but its price is capped at 74.8 for this month…this is exactly +60% of Oct month end price.
Calculate all limits from 1st October 2015. Price can move beyond quarterly limits after the ending of present quarter, when quarterly limits will be calculated based upon closing prices of 31st December, given that other limits do not interfere.
in Cupid case it is not working as per your suggestion.
On 30th Sept. Price is 197.5
with 10% circuit limit …it should be capped at 395 for this Quarter…
But it is now capped at 397.6 for this November month. This is exactly conceding with monthly cap.
I think we are missing something or misunderstood the BSE notification.
I’m not sure why this has happened. For me it worked in a couple of stocks exactly based upon closing price of 30th sept.
Bottomline :- BSE needs to improve communication with investors
Does anyone know about how circuits level are changed?
I.e. 1) If a company has current circuit limit to 5% , how and when it can go upto 20%?
It depends on previous run in this month and its run from 1st of Oct.
if its circuit limit is 5%…and if that particular stock gains 30% so far in this month and 60% from 1st of OCT. then there won’t be any gain till end of this quarter.so stock has to wait till 1st week of jan.to gain 20% from closed price on 31st dec.
This is as per my understanding…
But in Cupid"s case i am not understanding the logic of quarterly price cap…
Yeah correct, But what happens when a stock having circuit of 5% is now on 10% circuit then how to read it?
and what are the criteria for such change? (i.e. going from 5% to 10% circuit?)