By way of a circular dated 12 January 2015, the Securities and Exchange Board of India has directed stock exchanges to implement a stronger "circuit breaker mechanism", which includes provisions to track the movement of the Bombay Stock Exchange's Sensex or the National Stock Exchange's Nifty indices after every trade. The circuit breaker system will stop trading in all equity and equity derivative markets in the event of a large swing in share movements on Nifty or Sensex.
Originally published in March 2015 Newsletter.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
