Can you explain how does circuit limits of exchange(s) work because some stocks like sanwaria have been locked in upper circuit everyday. Circuit limit for it was revised from 10% to 5%.
So whenever it hits 5% increase in price, it gets locked in circuit.
But recently banking stocks went high upto 40% in a single day. Examples - PNB, SBI & more which rallied in 20 % to 30% .
1- Please explain why these banking stocks were not locked in circuits despite HUGE gain.
2- If stock(s) are locked in circuit, are they temporarily blocked for intraday or they get locked for entire day?
Many stocks which hit upper/lower circuit get locked for entire day but I read somewhere that the circuit lock is only temporary & trading resumes after 1- 2 hours.
3- How can we be then held responsible if our stock gets locked in circuit & we are unable to square off our intraday position ?
Exchange will impose penalty on trader & auction market proceedings will follow.
Waiting for your answer.