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Investing

Stock Market Crash Rules: Circuit Breakers and Price Bands

In a crash, Indian markets halt when the Nifty or Sensex moves 10%, 15% or 20%. Halt length depends on the time of day.

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Written by Aarav Sharma

Published 19 October 2026·7 min read

On this page8 sections
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A stock market crash in India triggers a market-wide trading halt when the Nifty 50 or the BSE Sensex moves 10%, 15% or 20% from the previous day’s close. A 20% move shuts the market for the day; smaller moves pause it for a set time. Single shares have their own limits, the upper and lower circuit.

Key facts

Rule Detail
Market-wide trigger levels 10%, 15% and 20% movement of the Nifty 50 or Sensex, up or down, whichever index breaches first
Base for the levels Previous trading day’s index close, recalculated every day and rounded to the nearest tick
What stops All equity and equity derivatives trading, across exchanges
Orders at the time of the halt All outstanding orders are cancelled
Restart A 15-minute pre-open call auction, then normal trading
Stock price bands (NSE) 2%, 5%, 10% or 20% either way; no fixed band for stocks with F&O contracts
Rule basis SEBI circulars of 28 June 2001 and 3 September 2013 (revised system in force at NSE from 14 October 2013)

Market-wide circuit breakers: the 10%, 15% and 20% levels

The index-based circuit breaker has been in place at NSE since 2 July 2001. A breach halts trading in all equity and equity derivative markets nationwide at the same time, so NSE and BSE stop together. The trigger is the Nifty 50 or the Sensex, whichever crosses the limit first.

The percentage levels are turned into index points each evening. NSE’s page for 17 September 2026 shows how that works, based on the Nifty 50 close of 23,217.60 on 16 September 2026:

Level Points either way Nifty 50 level on a fall
10% 2,321.75 20,895.85
15% 3,482.65 19,734.95
20% 4,643.50 18,574.10

The fall-side levels are simple subtraction from the close; the points change every day, so check NSE’s circuit breaker page for the current figures.

How long trading stops, by time of day

The halt is shorter later in the day, and some late breaches cause no halt at all.

Level hit When Halt Pre-open auction after the halt
10% Before 1:00 pm 45 minutes 15 minutes
10% 1:00 pm to 2:30 pm 15 minutes 15 minutes
10% At or after 2:30 pm No halt Not applicable
15% Before 1:00 pm 1 hour 45 minutes 15 minutes
15% 1:00 pm to before 2:00 pm 45 minutes 15 minutes
15% At or after 2:00 pm Rest of the day Not applicable
20% Any time Rest of the day Not applicable

If the Nifty 50’s opening value, worked out at the end of the 9:00–9:15 am pre-open session, already breaches a limit, the halt starts with the continuous session. Trades matched in the pre-open session still stand.

The 10% breaker has been hit in recent memory. On 13 March 2020 and again on 23 March 2020, both indices fell more than 10% early in the day and trading stopped for 45 minutes, as Angel One and Groww recount.

Stock price bands: upper circuit and lower circuit

Each share also has a daily price band, measured from its previous close. NSE applies these bands:

ItemDetails
2%, 5% or 10% either wayfor shares the exchange places in those bands.
20% either wayfor all remaining shares, including debentures and preference shares.
No fixed bandfor shares with derivative contracts. NSE instead sets a 10% dynamic band to block orders at unrealistic prices.

A share at its upper band is “in the upper circuit”. Orders above that price are rejected, so buyers queue at the band price and trades happen only if sellers appear. The lower circuit works the other way round: sellers queue and wait for buyers. Many brokers warn that an intraday position may not square off if the stock is locked at a circuit.

New listings follow their own rules. On listing day, an IPO of up to ₹250 crore trades with a 5% band in the normal session, and a larger issue with a 20% band, after a special pre-open session that has no band. Our guide to stock market basics explains the wider trading set-up.

How the band flexes for F&O stocks

For shares with derivatives, the 10% dynamic band can widen during a strong move. Under NSE’s consolidated circular of 28 April 2026:

  1. If trades take place at 9.90% or more from the base price, the band moves to 15%, then 20% at 14.90%, and so on.
  2. At least 50 trades, by 10 different client codes and 3 trading members on each side, must occur at that level first.
  3. The first two flexes are 5% each, after a 15-minute cooling-off period (5 minutes in the last half hour).
  4. The next two flexes are 3% each, after 30 minutes; later flexes are 2% each, after 60 minutes.
  5. The band slides rather than widens. With a ₹100 close and a 10% band, an upward flex changes ₹90–₹110 to ₹95–₹115.

When the band slides, pending limit orders that fall outside the new band are cancelled by the exchange. Stop-loss orders outside the band are not cancelled.

What happens to your pending orders

ItemDetails
Market-wide haltNSE cancels all outstanding orders at the time of the halt. Place fresh orders in the pre-open auction or after trading resumes.
IPO, relisting and SME call auctionsif a halt hits during order collection, the session closes and its orders are cancelled. A fresh one-hour session is held the same day for IPOs and relisted shares.
Stock at a circuityour order stays in the book at or inside the band but may not execute until the other side appears.
Existing holdingsa halt freezes trading, not ownership. Your shares and units stay in your demat account.

Our step-by-step note on how to buy and sell shares covers order types and how they are placed.

How to check live circuit levels and why the market is down

  1. Open NSE’s Circuit Breakers page for the day’s Nifty 50 trigger points in index terms.
  2. For a single share, check the price band shown on the stock’s quote page on NSE or BSE, or in your broker’s app.
  3. Use NSE’s Price Band Hitters report to see which shares are locked at their upper or lower band.
  4. For the cause of a fall, read the exchanges’ announcements and the Nifty and Sensex moves together; a fall in both usually reflects wider news rather than one company. Our explainer on Sensex and Nifty shows what each index tracks.

A halt is announced by the exchanges and shows up in trading apps as a paused market. Normal continuous trading runs from 9:15 am to 3:30 pm, so the timings in the table above apply within that window. Stocks in NSE’s closing auction session follow a separate 3:15–3:35 pm auction with a 3% band.

Frequently asked questions

What is a circuit breaker in the stock market?

It is an automatic trading halt set by SEBI rules. It kicks in when the Nifty 50 or Sensex moves 10%, 15% or 20% from the previous close.

How long is trading halted if the Nifty falls 10%?

45 minutes if it happens before 1 pm and 15 minutes between 1 pm and 2:30 pm, each followed by a 15-minute pre-open auction. After 2:30 pm there is no halt.

Does the circuit breaker work on a rise as well as a fall?

Yes. The limits apply either way, so a 10% jump triggers the same halt as a 10% fall.

What does upper circuit mean?

The share has reached the top of its daily price band. No order above that price is accepted, so buyers wait in a queue for sellers.

Can I sell a share stuck in the lower circuit?

You can place a sell order at the band price, but it executes only if a buyer takes it. Sellers usually outnumber buyers at that level.

Are my orders kept when the market is halted?

No. NSE cancels all outstanding orders when an index circuit breaker halts trading, so you must re-enter them.

Do F&O stocks have circuit limits?

They have no fixed price band. A 10% dynamic band applies and can be flexed in steps during a strong move.

Sources

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