Doubts in circuits breakers ( circuit limits)

I have some doubts about circuits breakers…and want to clarify it… :pray::pray::-

  1. Does F&O traded stocks means stocks which have futures and options… have upper and lower circuits…??

( I am getting double answers some is saying they don’t have and some are saying they have up/ lr circuits limits)

  1. What is dynamic price band… And what is the difference between normal price band and dynamic price band…?

I appreciate your replies :pray::pray::pray:

@ShubhS9 @nithin

F&O stocks do not have Circuit Limit’s.

There are Price Bands to ensure trading is done within the specified range to prevent erroneous order entry, as and when price approaches this levels the limits are relaxed further.

With Dynamic Price Bands, as explained above as and when price of security approaches these level the limits are relaxed further to ensure trading continues.

With Normal Price Band, as and when price hits this level trading is halted in that particular scrip.

You can read this FAQ from NSE, they have explained everything in detail there.

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Thank you very much sir…

  1. The term circuit limits are used for index…

  2. And price band ( upper and lower price band ) is used for individual stocks.

  3. The stocks which are not traded in f&o segment have fixed price bands and in case if price reaches this bands the trading is halted depending on the time and percent increase or decrease.

  4. And the stocks which are traded in f&o segments have dynamic price limit…

Is my understanding right sir… @ShubhS9

And another doubt…in the FAQ of NSE on the price band… It’s said that the flexing or relaxation of operating price range is done only for options contacts in f&o segment not for futures contacts…

Why sir futures and options both are derivatives and their price is defined by the underlying… So if the flexing is done for the options of the underlying then future is automatically relaxed…?? Right sir…

Please sir clarify this…
I always appreciate your replies :pray::heart:

Circuit Limit and Price Band both are the same.


Yes, stocks trading in F&O segment have dynamic price bands.

If and when the Futures and Options reach their Circuit Limits, those are relaxed further for both.

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What about the circuit limits(fixed or dynamic) for the stocks temporarily banned for F&O ?


When a certain scrip is in Ban Period, only initiating fresh position isn’t allowed, other things remain the same.

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If either nifty or sensex ; breach the 20% ; the market will remain closed for the entire rest of the day !

The queries are :

(1) is it either nifty or sensex ; any one of the two or the rule applies only if both of them breach the 20% mark ?
(2) is it for spot or future ?
(3) what if sensex or nifty don’t breach 20% ; but ; BANKNIFTY breaches 20% ? Will the market close or keep on ?

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I am also curious about a thing.

What if, on an expiry day, anytime after 2:00 PM, Nifty/Sensex falls/rises 15% and the market gets halted for the day. How will future/option settlement happen? Will the VWAP of the trades in the last 30 minutes of trading before the market halt be taken into account for finding the Settlement Price or will some other method be used? Also, has something like this happened before?

My question is somewhat similar to the one asked on an old thread (Lower Circuit on expiry day)