Price circuit limitation?


Can somebody explain, how was this allowed. How did this stock move more than assigned exchange circuit limit?

It works on the basis of Trailing stop loss limit in Bracket Order.

One more example how it works is Seat Belt in Cars.

Gradual Increase or Decrease will not trigger circuit breaker.

So that means there is no hard rule for limits. A stock to swing to any range slowly??
This looks dangerous then!

For F&O stocks there is no Circuit Limit.

Indiabulls RE is a F&O stock. F&O stocks do not have circuit limitation. This is because, the risk of the stock in the spot market can be hedged with its respective derivative contract in the F&O segment.

However, for stocks which do not have a derivative contract, the risk cannot be contained. Such large moved on a single day can be catastrophic for investors, hence exchanges impose a circuit limit for non derivative stocks.