Index (Sensex,Nifty) based market wide circuit breaker for the Quarter 1st October 08 - 31st December 08

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NSE ( NIFTY)

NSE/CMTR/11406
September 30, 2008
Index based market wide circuit breaker for the quarter October 01, 2008 to December 31, 2008.

Circular No.: NSE/CMO/049/2008
Download No. NSE/CMTR/11406
Date: September 30, 2008

Dear Members,

Sub: Index based market wide circuit breaker for the quarter October 01, 2008 to December 31, 2008.

SEBI vide its circular no. SMDRPD/Policy/Cir-37/2001 dated June 28, 2001 has informed the Exchange to implement index based market wide circuit breaker in compulsory rolling settlement with effect from July 02, 2001. The index based market wide circuit breaker system is applicable at three stages of the index movement either way at 10%, 15% and 20%. In this regard, Exchange has issued circular no. NSE/CMO/0015/2001 (Download No. NSE/CMTR/2657) dated June 29, 2001.

Accordingly the percentages are calculated on the closing index value of the quarter. These percentages are translated into absolute points of index variations (rounded off to the nearest 10 points in case of NIFTY). At the end of each quarter, these absolute points of index variations are revised and made applicable for the next quarter.

On September 30, 2008, the last trading day of the quarter, NIFTY closed at 3921.20 points. The absolute points of NIFTY variation (over the previous day’s closing NIFTY) which would trigger market wide circuit breaker for any day in the quarter between October 01, 2008 to December 31, 2008 would be as under:-

Percentage (+/-) Equivalent Point (+/-)
10% 390
15% 590
20% 780

For any clarifications, members are advised to contact the following officials:
Mr. Khushal Shah / Mr. Sunil Gawde / Mr. Amit Kursija / Mr Hasnain Khatri at 26598153 / 26598156 / 26598157

For National Stock Exchange of India Ltd.

Suprabhat Lala
Asst. Vice President (Capital Market)
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BSE ( SENSEX)

Index based market wide circuit breaker for the Quarter 1st October 2008 to 31st December, 2008

Notice no :20080930-22
Notice date :Tuesday, September 30, 2008
Subject :Index based market wide circuit breaker for the Quarter 1st October 2008 to 31st December, 2008
Segment Name Equity

Contents :

Trading Members of the Exchange are hereby informed that the Exchange implements on a quarterly basis (SEBI circular SMDRPD/Policy/Cir-37/2001 dated June 28, 2001) the index based market wide circuit breaker system. The system is applicable at three stages of the index movement either way at 10%, 15% and 20%. This circuit breaker brings about a coordinated trading halt in all equity and equity derivative markets nationwide.

The market wide circuit breakers would be triggered by movement of either 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 1-hour market halt if the movement takes place before 1 p.m. In case the movement takes place at or after 1 p.m. but before 2.30 p.m. there will be a trading halt for ½ hour. In case the movement takes place at or after 2.30 p.m. there will be no trading halt at the 10% level and the market will continue trading.

· In case of a 15% movement of either index, there will be a 2-hour market halt if the movement takes place before 1 p.m. If the 15% trigger is reached on or after 1 p.m. but before 2 p.m., there will be a 1 hour halt. If the 15% trigger is reached on or after 2 p.m. the trading will halt for the remainder of the day.
· In case of a 20% movement of the index, the trading will be halted for the remainder of the day.

The percentages are calculated on the closing index value of the quarter. These percentages are translated into absolute points of index variations (rounded off to the nearest 25 points in case of SENSEX). At the end of each quarter, these absolute points of index variations are revised and made applicable for the next quarter.

On September 30, 2008, the last trading day of the quarter, SENSEX closed at 12860.43 points. The absolute points of SENSEX variation (over the previous day’s closing SENSEX) which would trigger market wide circuit breaker for any day in the quarter between 1st October 2008 and 31st December 2008 would be as under:

Percentage (+/-) Equivalent Points (+/-)
10% 1275
15% 1925
20% 2575

Sanjay Saksena
Sr. General Manager- Knowledge Management


SOurce:NSE,BSE websites.