What is the meaning of Upper and Lower circuit breaker in share market
What is the meaning of circuit breaker?
In simple words, circuit breaker is the limit imposed on stocks or on Index to trade within the range.
If this range is violated then that stock or index (In case of Index, trading will be halted on both indices) will come under circuit breaker system.
What is Upper circuit breaker stock in stock market
If the stock or index moves in upward direction and violates the upper limit then that stock or index will come under upper circuit breaker

What is Lower circuit breaker in stock market
If the stock or index moves in downward direction and violates the lower limit then that stock or index will come under lower circuit breaker.

Please note
- The circuit breaker will apply on both indices (nifty and sensex) even if either of the indices comes under circuit breaker.
How circuit breaker works on Individual stocks?
The price band is applied on individual stocks to trade within that range and if the price range is violated in either direction then the trading in halted on that stock.

The price band on individual stocks changes on daily basis as follows.

Percentage is applied based on the previous day's closing price.
A stock can have price bands of 20% either way

A stock can have price bands at 10% either way

A stock can have price bands at 5% either way

A stock can have price bands at 2% either way

No price bands are applicable on stocks on which derivative (futures and options) products are available.
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What are the Rules for circuit breakers for stocks and indices
The Exchange has implemented index-based market-wide circuit breakers with effect from July 02, 2001 based on SEBI Circular No. SMDRPD/Policy/Cir-37/2001 dated June 28, 2001. SEBI vide its Circular no. CIR/MRD/DP/ 25 /2013 dated September 03, 2013 has partially modified the earlier circular. The revised guidelines are as below.

The index-based market-wide circuit breaker system applies at 3 stages of the index movement, either way viz. at 10%, 15% and 20%. These circuit breakers when triggered bring about a coordinated trading halt in all equity and equity derivative markets nationwide. The market-wide circuit breakers are triggered by movement of either the BSE Sensex or the Nifty 50, whichever is breached earlier.
The market shall re-open, after index based market-wide circuit filter breach, with a pre-open call auction session. The extent of duration of the market halt and pre-open session is as given below:
Trigger limit     Trigger time             Market halt duration      Pre-open call auction 
                                                                                                session post market halt

10%               Before 1:00 pm.           45 Minutes                 15 Minutes

                     At or after 1:00 pm
                     upto 2.30 pm               15 Minutes                 15 Minutes

                     At or after 2.30 pm       No halt                      Not applicable

15%               Before 1 pm                1 hour 45 minutes       15 Minutes

                     At or after 1:00 pm
                     before 2:00 pm            45 Minutes                 15 Minutes

                     On or after 2:00 pm      Remainder of the day   Not applicable

20%               Any time during
                     market hours               Remainder of the day    Not applicable
Exchange shall compute the Index circuit breaker limits for 10%, 15% and 20% levels on a daily basis based on the previous day's closing level of the index rounded off to the nearest tick size.
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What is the meaning of Upper Circuit breaker