Synopsis: Ola Electric, SML Mahindra, IDBI Bank, and four other stocks witnessed a revision in their price bands from 10% to 20% on June 5, allowing greater trading flexibility, improved liquidity, and more efficient price discovery.
Stock exchanges periodically revise price bands, also known as circuit filters, to ensure efficient price discovery and smooth trading. A wider price band allows stocks to move more freely in response to market demand while maintaining safeguards against excessive volatility.
On June 5, the price bands of several listed companies were revised from 10% to 20%. The move is expected to improve liquidity, reduce trading disruptions caused by frequent circuit hits, and enable more effective market participation in these stocks. Here is the list of stocks to look out for:
Ola Electric Mobility Ltd
Ola Electric Mobility Limited is one of India’s leading electric vehicle companies, primarily focused on electric two-wheelers and EV ecosystem development. The company manufactures electric scooters, battery packs, and related technologies while investing heavily in battery cell manufacturing and charging infrastructure. The stock’s price band was changed on 5th June from 10% to 20%.
SML Mahindra Ltd
SML Mahindra Ltd is a commercial vehicle manufacturer specializing in buses, trucks, and special application vehicles. The company has established a strong presence in the medium and light commercial vehicle segments and serves sectors such as passenger transportation, logistics, and institutional mobility. The stock’s price band was changed on 5th June from 10% to 20%.
Fino Payments Bank Ltd
Fino Payments Bank Limited is a payments-focused bank that promotes financial inclusion by providing banking services to underserved and rural populations. Through an extensive merchant network and digital platforms, it offers savings accounts, money transfers, micro-insurance, and payment solutions. The stock’s price band was changed on 5th June from 10% to 20%.
Ganesha Ecosphere Ltd
Ganesha Ecosphere Limited is one of India’s largest manufacturers of recycled polyester staple fiber and recycled PET products. The company converts post-consumer plastic waste into value-added textile and industrial materials, supporting sustainability and circular economy initiatives. The stock’s price band was changed on 5th June from 10% to 20%.
IDBI Bank Ltd
IDBI Bank Limited is a full-service commercial bank offering retail, corporate, MSME, and digital banking services. Over the past few years, the bank has significantly improved its asset quality, profitability, and capital position through focused recovery efforts and operational improvements. The stock’s price band was changed on 5th June from 10% to 20%.
JNK India Ltd
JNK India Limited is an engineering company specializing in process-fired heaters, reformers, and cracking furnaces used in refineries, petrochemical plants, and energy projects. The company provides design, engineering, procurement, and project execution services for large industrial clients. The stock’s price band was changed on 5th June from 10% to 20%.
JTL Industries Ltd
JTL Industries Limited is a leading manufacturer of electric resistance welded (ERW) steel pipes, tubes, and structural steel products. The company caters to sectors such as construction, infrastructure, agriculture, water distribution, and engineering. With expanding production capacity and increasing demand from infrastructure and industrial projects. The stock’s price band was changed on 5th June from 10% to 20%.
Why Does the Price Band Change from 10% to 20%?
Stocks may be shifted from a 10% price band to a 20% price band to allow greater flexibility in price movement while ensuring orderly trading. Here are the key reasons:
- Higher price volatility: When a stock begins experiencing larger price fluctuations, the exchange may widen the circuit limit from 10% to 20% to facilitate efficient price discovery and reflect market demand more accurately.
- Increase in trading volumes: A surge in buying or selling activity can lead to frequent hits on the 10% circuit limit. Expanding the band to 20% helps reduce trading disruptions and allows transactions to occur more smoothly.
- Improved market liquidity: Stocks with higher liquidity and active participation may require a wider trading range, enabling prices to adjust more freely without repeatedly triggering circuit filters.
- Balanced investor protection: Even with a wider 20% band, safeguards remain in place to prevent excessive and uncontrolled price movements while accommodating normal market volatility.
- Exchange surveillance and review: Stock exchanges regularly assess trading behavior, liquidity, and volatility. Based on these factors, they may revise price bands to maintain fair, efficient, and orderly market operations.
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