A system to curb excessive speculation in the stock market, applied by the stock exchange authorities, when the index spurts or plunges by more than 5%. Trading is then suspended for some time to let the market cool down.
Although introduced in November 1992, it was used for the first time in the Bombay Stock Exchange on Tuesday, 9 March 1993 when the Sensex declined by more than 5% from the opening level, i.e. from 2451.20 to 2318.26.
CIRCUIT BREAKER
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