Minutes after Finance Minister Nirmala Sitharaman announced a vehicle scrapping policy in Union Budget 2021 on Monday, the stocks of MSTC Limited, a company formed for regulating export of ferrous scrap from India, hit the upper circuit. This means it cannot move up any further for the day and one cannot trade in that stock for the session.

In the budget, the minister announced the scrapping policy as one of the steps to reduce air pollution. Under the policy, commercial vehicles would be required to undergo a fitness test after 15 years, and personal vehicles would require it after the completion of 20 years. 

“Details of the scheme will be separately shared by the ministry,” she added.

The stocks of MTMC limited hit the upper circuit at 11.25 am, minutes after the announcement was made by the minister. 

MSTC is a Mini Ratna Category-I PSU under the administrative control of the Ministry of Steel. It is based in Kolkata, West Bengal.