Trading Halt refers to a temporary suspension of trading activities in a particular security or an entire exchange. This pause is implemented to maintain market integrity, ensure fair trading practices, and allow investors to assess significant news or events that may impact stock prices. A trading halt is typically imposed by the stock exchange or market regulator, such as the Securities and Exchange Board of India (SEBI), under specific circumstances.

Trading halts usually occur when a company is about to release price-sensitive information, such as mergers, acquisitions, financial results, or regulatory announcements. The halt prevents unfair advantages and reduces speculative volatility by ensuring that all investors receive information simultaneously. In some cases, trading may also be halted due to technical glitches, excessive price movements (known as circuit filters), or broad market disruptions.

Once the exchange determines that normal market conditions can resume, trading is restarted following proper disclosure and communication. The duration of a trading halt varies—it can last a few minutes, hours, or, in rare situations, an entire trading session, depending on the nature of the event and the regulator’s assessment.

For investors, understanding trading halts is crucial as they directly influence liquidity, price discovery, and order execution. It’s important to monitor official exchange announcements through platforms like NSE and BSE to stay informed about active or recent halts. Staying aware of such developments helps traders and investors make informed, compliant, and timely decisions.

In summary, a trading halt serves as a market safeguard, protecting investors from misinformation and ensuring a transparent, orderly, and fair trading environment—key principles aligned with SEBI’s mission of maintaining market stability and investor confidence.