The Ministry of Finance has sought a report from capital markets regulator Securities and Exchange Board of India on the technical glitch that brought trading to a halt for three hours on Monday morning on National Stock Exchange, even as India’s largest stock exchange took three attempts to resume normal markets. SEBI will likely submit its interim report to the Ministry of Finance by today evening, CNBC TV18 reported citing unidentified sources in the ministry.
SEBI is in touch with NSE and is closely monitoring the situation. NSE has reportedly informed the Ministry of Finance that the data glitch was due to a software issue, while the market regulator SEBI is also said to be coordinating with the exchanges on the technical issue. ET Now reported that the finance ministry and SEBI will watch out for any data breaches.
NSE resumed normal trading in cash and derivatives at 12.30 pm in third attempt today, after its two attempts at starting the trade failed. However, television reports said and dealers posted on Twitter that there were still issues in executing trade orders in cash markets while futures markets were functioning well with the F&O orders going through smoothly.
There were also reports of intermittent disruptions in the third special 15-minute pre-opening session during 12.15 am-12.30 am. Meanwhile, exchange data also showed a huge gap between buy price and sell price of some top scrips, including ITC Ltd, which was being quoted at Rs 335 on buy side, but at Rs 321 on sell side.
NSE suffered from a major technical glitch today morning, with price quotations for individual listed stocks not updating on Monday, which led to a halt in trade on India’s largest bourse, even as the rival stock exchange BSE seemed to assuage investor concerns saying that trading on its platform continues as usual.
Investors could not place trades on NSE since morning, in a problem that appeared to be widespread, a Reuters report said citing four unidentified dealers. The dealers said they did not know why the quotations were not updating. Meanwhile, BSE said, “We are not experiencing any technical difficulties today and trading is taking place as usual.”
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.