MUMBAI, July 29: The National Stock Exchange (NSE) has modified the price band for securities for the day after a trading holiday on the NSE but other exchanges have had trading activity.

This is to allow the prices at the NSE to absorb the effect of security sensitive news that may have impacted the market on the previous day.

Normally on such occasions, there is a disturbance in the market as on the other exchanges, the prices are widely different from those at the NSE where the price bands are unable to take into account the news. Under these circumstances, no trading takes place in specific securities on the NSE due to the applicable price band based on the closing price of the previous trading day.

According to an NSE release, from July 30, the following procedure will be followed with respect to the base price of the NSE-50 and the NSE-Midcap securities for the day following a NSE trading holiday. If the price of a security on other exchanges moves by more than the price band allowable by NSE, on the NSE trading holiday, the closing price to calculate the price band for the subsequent day shall be changed notionally by a maximum 10 per cent allowed by Sebi for that security for one day and 25 per cent allowed by Sebi for the settlement.

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