1. NSE seeks clarification from BSE on spurt in stock’s volume after technical glitch halts trading

NSE seeks clarification from BSE on spurt in stock’s volume after technical glitch halts trading

National Stock Exchange sought clarification from Bombay Stock Exchange about a significant increase in the trading volume of its shares on NSE, after a major technical glitch brought trading to a halt on India’s largest stock exchange on Monday for three hours.

By: | Updated: July 10, 2017 6:21 PM
(Image: Reuters)

In an incident which is probably a matter of regulatory caution, but is laughable in some respect, National Stock Exchange sought clarification from Bombay Stock Exchange about a significant increase in the trading volume of its shares on NSE, after a major technical glitch brought trading to a halt on India’s largest stock exchange on Monday for three hours.

BSE Ltd, the owner and operator of Bombay Stock Exchange is listed on National Stock Exchange as Indian rules prohibit exchanges from self-listing. Today, BSE shares recorded abnormal volumes of trade, as a total of 5,941 shares of BSE worth Rs 64.58 lakh were traded on the NSE. The 140-year-old BSE Ltd, which got listed on NSE’s platform in February, said no price sensitive information is pending with it for furnishing to NSE.

“Significant increase in volume has been observed in BSE Limited. The exchange, in order to ensure that investors have latest relevant information about the company and to inform the market place so that the interest of the investors is safeguarded, had written to the company,” NSE said.

In its response BSE said that there is no such announcement or price sensitive information, which is pending to be intimated by the company to the stock exchange concerning its performance. “We wish to reiterate and clarify that all the information furnished by the company is in public domain and the company will comply with Sebi (Listing Obligations and disclosures Requirements) Regulations and keep the stock exchanges duly informed of all the price sensitive information(s),” BSE said in a statement.

Earlier on Monday, trading halted on NSE in cash and derivatives following a technical glitch which prevented prices of individual securities from updating. Traders complained that their orders were not getting excepted on the exchange. Twitteratti did not take NSE’s notice to BSE kindly, with most tweeple suggesting that BSE should just write “Thank you” in its reply to NSE.

It must be noted that NSE, the newer of the two main stock exchanges in India, commands over 80% of the equity cash and equity derivatives market, far ahead of the 14% controlled by BSE, which is Asia’s oldest stock exchange.

This morning, brokers found that price quotes were not updating on NSE since open. When NSE resumed normal trading in cash and derivatives at 12.30 pm in its third attempt today, it was still trying to address a display issue which was preventing from updated prices being shown in cash markets, after dealers complained that there were still issues in executing trade orders in cash segment.

  1. No Comments.

Go to Top