I am trying to understand Lower Circuit limitation for deep OTM options.

Check the 2 screenshots (NIFTY spot is at ~17370 when I took these screenshots on 18 Feb, Friday, 12:45 pm).

For both PE/CE ATM strike (17300), I see lower circuit value as 0.05 (CMP: 237), but for deep OTM of 15800, Lower Circuit value is 5.7 (CMP: 7.2). Please note that I am checking these values on a Friday so it’s not an expiry day.

Queries:

- Why a (higher) Lower Circuit Limit for deep OTMs?
- During trading hours, if lower circuit limit is reached for deep OTMs, will the circuit limit be revised by the exchange?
- If answer to 2 is yes, will the strike be frozen for trading for sometime before the revision happens? For how long will it be frozen and how will the new lower circuit limit price be calculated?

Thanks.