To check excessive volatility, leading exchange BSE on Thursday tweaked the circuit limit for the shares of two of IL&FS Group companies and seven other firms. The new limits, effective Friday, will ensure stock prices do not fluctuate beyond a prescribed level during a session.
According to a notice, a circuit limit of 10 percent each has been fixed for IL&FS Engineering and Construction Company and IL&FS Transportation Networks.
The price band has been revised from their existing levels in the nine scrips with effect from October 5, the BSE said.
IL&FS Engineering settled 20 percent up on the BSE at Rs 23.02, while IL&FS Transportation closed at Rs 33.60, up 4.51 percent from the previous close.
Over the last four trading sessions, IL&FS Engineering has surged over 72 percent and IL&FS Transportation has rallied 49 percent.
On Wednesday, the exchange had set a circuit limit of 5 per cent for IL&FS Investment Managers.
The government, on Monday, superseded the board of infrastructure conglomerate IL&FS against the backdrop of debt defaults by some of its group entities that triggered fears of liquidity crunch.
As per its latest balance sheet, IL&FS Group has infrastructure and financial assets exceeding Rs 1,15,000 crore and is facing tremendous debt pressure and struggling to service around Rs 91,000 crore in debt.
A price band of 10 percent has been also fixed for Space Incubatrics Technologies, Corporate Courier and Cargo, RMC Switchgears and Riddhi Steel and Tube.
Besides, a limit of 5 percent has been set for Bigbloc Construction, Lotus Chocolate Company and 5 paisa Capital.
First Published: IST