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CIRCUIT BREAKER FOR AN INDEX

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Circuit breakers are applied only on equity and equity derivative markets. Whenever the major stock indices like BSE Sensex and Nifty cross the threshold level, SEBI rules require that the trading at the stock exchange be stopped for a certain period of time beginning from half an hour to even an entire day. The idea is to allow the market to cool down and resume trading at normal levels. The following threshold limits are implemented at different stages:-

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