The BSE on Monday imposed circuit filters on cross deals, special negotiated deals, bulk deals and odd-lot deals in the form of 50 per cent over and above the normal circuit filters. While the regulator strongly hints at the fact that the exchange should not have gone ahead with the imposition of the 15 per cent circuit filters on special negotiated deals as it has only recently appointed a committee to look into the matter. BSE has, however, made a strong case for the same.

BSE executive director RC Mathur cited the classic example of Cipla which in the absence of circuit filters recorded erratic price movements. Negotiated deals are those transactions which are conducted outside the exchange but are reported to the exchange at a later stage in order to fulfill the settlement-related obligations. Mathur said thesedeals should be monitored closely, and as they leave an impact on the price formation, the imposition of the price band was inevitable.