What are market-wide circuit breakers?

What are market-wide circuit breakers?

Market-wide circuit breakers refer to a mechanism that suspends trading temporarily in the event of a rapid increase or decrease in the market beyond certain predetermined levels. These circuit breakers are activated based on the movement of the BSE Sensex or the Nifty 50, whichever is breached first. The circuit breaker system is index-based and operates at three stages of the index movement - 10%, 15%, and 20% in either direction. For further information, please visit the website nseindia.com/products-services/equity-market-circuit-breakers.