Defence major Cochin Shipyard‘s price band has been revised by the exchanges. The change would be applicable from Wednesday’s trading session.

What Happened: Cochin Shipyard's price band has been revised downwards from 10% to 5%. The downward revision comes just a month after the exchanges had revised the defence PSU stock’s price band upwards to 10%. This revision means that the share price of the company is capped and cannot fluctuate by more than 5% in a single day.

The revision also follows the company being added to the long-term Additional Surveillance Measure (ASM) framework earlier this week. PSUs were previously exempt from the ASM framework, but in a move aimed at protecting investor interests, SEBI expanded the scope of ASM to include PSUs earlier this month.

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The ASM framework is designed to monitor and regulate stocks with unusually high volatility. Stocks placed under this framework are subject to heightened scrutiny to mitigate risks associated with speculative trading or price manipulation.

The price bands of listed securities are also regularly adjusted by stock exchanges as part of their oversight to control excessive volatility. The BSE employs a circuit filter mechanism to limit the maximum price fluctuation of a stock within a single day. These price bands set the upper and lower boundaries for a stock's price movements.

Cochin Shipyard's shares have gone down by 12% in the past 30 days. Since the start of the year, the stock has gained over 160%.

Price Action: Shares of the company were up 0.94% to close at ₹1,796 on Tuesday.

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