Gnfc lower circuit or not

[Varun_Katyal]

Hi all … today in gnfc, trading ws halted at 11.11am due to 10% circuit ( acc to my understanding, lwr circuit ws d reason) … though it shows no circuit lmt at nse website … n thr wer no buyers at 11.11 … noticed it quite often in many stocks tht trading is halted n thn aftrr 5-10mins resumed … acc to me, nse stops trading if 10% or 20% hits n then bcos its a no curcuit stock, it opens tht stock again fr trading … cn someone pls clarify tht is this correct ? Cn i safely short sell this type of stock if i want to (aftr circuit opens or before it is reached) ? @ShubhS9

[ShubhS9]

GNFC trades in the F&O segment and stocks trading in the F&O segment have dynamic price bands, which are relaxed further when these are hit. This post explains how the process of relaxing price bands works:

Upper circuit relaxation

For stocks with derivatives, the following criteria need to be met for relaxation of the circuit limits (NSE website) - 2. How does Exchange’s flexing mechanism works? The process of flexing is system driven. In the event of a market trend movement in either direction, the dynamic price band shall be relaxed by 5% at a time in the direction of the price movement during the day in co-ordination with the other Exchange as follows: If the dynamic price band of the underlying security has been …

[Varun_Katyal]

Thanks