Leading bourse Bombay Stock Exchange (BSE) has halved its circuit limit for the shares of United Breweries Holdings Ltd
, capping its maximum movement in a day at 5 per cent.
The change is effective from on Wednesday and follows a sharp rally in the share price of the company in past few days.
Earlier, UBHL shares
were allowed an upward or downward movement of 20 per cent in a day. However, last month the bourse had reduced the circuit filter limit to 10 per cent.
The exchanges generally lower the circuit filter of a stock as part of their surveillance mechanism to avoid excessive volatility in the share price.
Shares of UBHL had hit 52-week high of Rs 155.85 on September 27 this year.
The scrip was trading 0.85 per cent higher at Rs 112.70 on the BSE at 1116 hrs.
The circuit filter limit for Kingfisher Airlines is 5 per cent, while that of United Spirits is 20 per cent and that of United Breweries Ltd is 20 per cent.
Shares of other UB group companies have also been on an uptrend so far this year largely on reports and speculations about stake sale in various businesses.