The exchanges on Tuesday evening announced the revision in price bands for several stocks including Mazagon Dock Shipbuilders.

What Happened: The Mazagon Dock Shipbuilders share price band has been revised upward to 20% from the earlier 10%. This means that the Mazdock share price cannot move more than 20% up or down within a single day.

Stock exchanges periodically adjust the price bands of listed securities as part of their surveillance measures to manage excessive volatility. The BSE uses a circuit filter mechanism to cap the maximum fluctuation allowed in a stock’s price in a day. These price bands determine the upper and lower limits for price movements of a stock.

See Also: RVNL’s Share Price Band Revised Upward By Exchanges

As prescribed by the Securities and Exchange Board of India (SEBI), all individual scrips are subject to price bands up to 20% on either side, except for those with derivative products associated with them. This regulation aims to mitigate excessive price swings and maintain market stability.

Shares of the company have been under pressure ever since the budget.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.