Why is there circuit breaker on DHFL?

General
1

Some F&O stocks have circuit breakers others don’t what nonsense is going on with SEBI and NSE?

Are all F&O stocks going to have a circuit breaker from now on? what exactly are the rules of these circuit breakers.

2

Which FNO stock you saw without circuit breaker?

Also what you mean by circuit breaker first of all? Stopping the circuit or breaking and continuing to next circuit?

3

F&O stocks don’t have circuit limits what is going on suddenly now?

4

Yes which one you saw with circuit limit? DHFL is 28% down

5

01%20PM
01%20PM806×720 69.3 KB

Do you see this? Why is there no defined rules on these limits?

6

How can it behave this way when its a F&O stock

19%20PM
19%20PM816×1212 7.65 KB

8

Fno stocks have dynamic operating ranges to avoid big erroneous trades. So 1st limit is set at 10% on both sides, once that is hit based on predefined conditions it will be extended by 5% each time through out the day. Check here for more, we should not blame regulators for everything. Personally I think it is user responsibility to know the rules before playing the game.

2 Likes
9

FNO stocks also have circuit limits but its temporary, NSE extends it whenever it reaches

In other stocks, once circuit reached, NSE doesnt extend until next trading session ofcourse

10

Yeah but this just makes things worse it prevents you from exiting any position. The stock keeps hitting bottom circuit one after the other (as shown in the chart above). It makes no sense.

These rules were just introduced.

11

These are there from years.

12

pls look https://economictimes.indiatimes.com/markets/stocks/news/sebi-proposes-circuit-filters-for-fo-segment-to-curb-price-volatility/articleshow/67946714.cms

13

This is different, also that is just they are recommending and still in discussions. But this operating ranges are there from long times.

14

Can you explain what operating rages?

NSE decides on a whim what operating ranges. Or is there any logic to set this range.

I am really confused what’s the different between what you are saying and the article I linked.

15

also the article you linked has date February 08, 2019 ?!?

16

You can ignore that article and go through the link I have provided above. Simply to put, all fno stocks will start with 10% limits both above and below, if it has moved by 10%, based on some predefined conditions NSE will increase limit by another 5% and the same keep on happening through out the day.

17

also the article you linked has date February 08, 2019 ?!?

18

That is just revision of existing circular.