n NISM Certifications
VII NISM Series VII
Medium

What mechanism do stock exchanges implement for scrips where no price bands are applicable?

Practice question from NISM Series VII Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Dynamic price bands

    Correct answer

  2. B

    Circuit filters

  3. C

    Trading restrictions

  4. D

    Quantity limit per order

Why this is the answer

For scrips without fixed price bands, exchanges use dynamic price bands to prevent orders beyond specified price limits, maintaining orderly trading.

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