Suzlon‘s share price band has been revised downwards by the exchanges. The changes will be applicable from Thursday’s session.

What Happened: Suzlon's share price band has now been revised downwards to 5% from 10%, which means that the stock can only move 5% in either direction. This comes just a month after the company’s price band was revised upwards following its removal from the Additional Surveillance Measure (ASM) framework.

Stock exchanges adjust price bands as a surveillance measure to manage excessive volatility. The BSE’s circuit filter mechanism limits the daily price fluctuation for listed securities, setting upper and lower limits on price movements.

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According to the Securities and Exchange Board of India (SEBI), most individual stocks are subject to price bands that limit daily price fluctuations to a maximum of 20% in either direction. These price bands are intended to prevent excessive volatility and maintain market stability. However, stocks that have associated derivatives are excluded from this restriction, as more complex market factors influence their prices.

Shares of the wind energy major have been bleeding at the bourses for the past few weeks. Just in the last five sessions, the stock has gone down around 20%.

Suzlon’s share price is now down over 35% from its highs in September and technical analysts see further decline ahead.

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