RVNL’s Share Price Band Revised Downward By Exchanges

RVNL‘s share price has surged around 45% in the last five sessions.

What Happened: The exchanges on Thursday, revised downward the price band for the popular railway stock. As per the exchange data, the RVNL’s share price band has been revised from 20% to 10%. Such revisions are made when a stock is experiencing more than usual volatility.

Bourses revise the price band as a part of a review of the surveillance action. BSE uses a circuit filter mechanism to check excessive volatility in a scrip. Price bands are the maximum fluctuation that is allowed in a stock in a day.

See Also: Why Morgan Stanley Thinks Govt Shouldn’t Cut Taxes In The Upcoming Budget

Securities and Exchange Board of India (SEBI) has prescribed that all individual scrips will have appropriate price bands up to 20% either way, except for the scrips having derivatives products on them.

RVNL share price over the past 30 days.

RVNL’s share price has been on a roll over the past few weeks. The impressive rally in the stock has been driven by a steady inflow of orders and optimism around the upcoming budget.

Read Next: BHEL Sees FII Holding Jump In June Quarter, LIC Trims Stake