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Leading stock exchange BSE today decided to halve the circuit limit for the shares of Multi Commodity Exchange (MCX), capping its maximum movement in a day at five per cent.
The change will be effective from August 8 and follows a plunge in the share price of the company in the past one week, where it has fallen over 50 per cent.
In a circular, the exchange said, “The circuit filter has been changed from their existing levels in the scrip (of MCX) with effect from August 8, 2013.
Earlier, MCX shares were allowed an upward or downward movement of 10 per cent in a day.
BSE, last week, had announced to reduce the circuit limit for the shares of MCX to 10 per cent from 20 per cent.
The exchanges generally lower the circuit filter of a stock as part of their surveillance mechanism to avoid excessive volatility in the share price.
MCX shares today plunged by nearly 10 per cent to close on its 52—week low of Rs 298.70 apiece on the BSE.
Shares of Financial Technologies—promoted MCX took a beating due to payment crisis faced by another group company National Spot Exchange Ltd.
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