Circuit Breaker

A circuit breaker is a regulatory mechanism used by exchanges to temporarily halt all trading activities across the entire market. It is implemented to prevent panic selling, especially when markets experience significant declines. Circuit breakers are triggered when an index reaches specific percentage thresholds. On the National Stock Exchange (NSE), the current circuit breaker limits are as follows: - 10% move before 1:00 pm: Trading halt for 45 minutes. - 10% move between 1:00 pm and 2:30 pm: Trading halt for 15 minutes. - 10% move after 2:30 pm: No trading halt. - 15% move before 1 pm: Trading halt for 1 hour 45 minutes. - 15% move between 1:00 pm and 2:00 pm: Trading halt for 45 minutes. - 15% move after 2:00 pm: Trading halt for the remainder of the day. - 20% move: Trading halted for the remainder of the day. These circuit breakers help restore order in volatile markets and protect investors from extreme losses.