Flash crash: Sebi says norms to protect investors in few days
Markets watchdog Sebi today said guidelines to prevent flash markets crash like what happened on the NSE in October and protect the interests of investors will be in place within a few days.
"I expect the final guidelines to safeguard the interests of investors due to flash crashes in a few days," Sebi Chairman U K Sinha told reporters at a CII-organised capital markets summit here, without elaborating further.
It can be recalled on October 5, there was a massive 900-point flash crash of the benchmark Nifty which wiped out nearly Rs 10 trillion of investor wealth.
Following the flash crash, trading was halted for about 15 minutes. A report of Sebi ordered probe is awaited.
The NSE claimed there was no technical glitch in its system and blamed the crash on erroneous orders worth over Rs 650 crore for multiple trades by broker Emkay Global in various stocks at low prices on behalf of an "institutional client".
The incident occurred on a day when expectations were high for an upward rally on bourses, following some big-ticket reform measures approved by the government the previous evening, including on FDI in sectors like insurance and pension.
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