Garden Reach Shipbuilders’ share price has been revised upward by the exchanges. The changes will be effective from today, Aug 7.
What Happened: The price band for Garden Reach Shipbuilders’ shares has been revised upward to 10% from the earlier 5%. This means that the share price of Garden Reach Shipbuilders cannot move more than 10% either up or down within a single day.
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Stock exchanges periodically adjust the price bands of listed securities as part of their surveillance measures to manage excessive volatility. The BSE employs a circuit filter mechanism to limit the maximum fluctuation allowed in a stock’s price in a day. These price bands set the upper and lower limits for price movements of a stock.
According to 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 is designed to reduce excessive price swings and ensure market stability.
Shares of the defence major have been under pressure ever since the budget came out.
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