RVNL's Share Price Band Revised Downward By Exchanges

RVNL‘s share price has surged around 45% in the last five sessions.

What Happened: The exchanges on Thursday, revised downward the price band for the popular railway stock. As per the exchange data, the RVNL’s share price band has been revised from 20% to 10%. Such revisions are made when a stock is experiencing more than usual volatility.

Bourses revise the price band as a part of a review of the surveillance action. BSE uses a circuit filter mechanism to check excessive volatility in a scrip. Price bands are the maximum fluctuation that is allowed in a stock in a day.

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Securities and Exchange Board of India (SEBI) has prescribed that all individual scrips will have appropriate price bands up to 20% either way, except for the scrips having derivatives products on them.

RVNL’s share price has been on a roll over the past few weeks. The impressive rally in the stock has been driven by a steady inflow of orders and optimism around the upcoming budget.

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