Spectra of a bounded diatomic molecule is studied numerically. Shifted Deng-Fan oscillator potential has been used to model the molecule. The accurate five-point finite difference method has been used to solve the Schr€ odinger equation for rovibrational motion of the molecule. The energies of the bound states as well as free states of the molecule have been calculated. In addition, radial matrix elements like hw i jr n jw j i, n 5 1, 2, and 3 have been calculated. These have been used to calculate the 2 l -pole static polarizabilities. The variation of bound state energies, matrix elements and 2 l -pole static polarizabilities with the boundary radius has also been studied. The Stark effect in case of this bounded system has also been investigated. K E Y W O R D S bounded diatomic molecule, Deng-Fan oscillator potential, Stark effect, static polarizability Int.