NSE Tech Glitch: Tech glitch at NSE: Sebi directs bourse to do root-cause analysis
“Sebi was in constant touch with the NSE officials and continued to monitor the situation closely. NSE was also advised to keep the market participants updated with the evolving developments,” Sebi said in a media statement.
The capital markets regulator also asked NSE to explain “the reasons for trading not migrating to the disaster recovery site”. Sebi has asked the country’s largest stock exchange to submit its report at the earliest.
Earlier on Wednesday, traders could not see price updates on NSE’s trading terminals and on the stock exchange’s website after 11:40 am. Eventually, the stock exchange informed the market participants that its operations were affected due to problems in the telecom links.
The glitch frustrated brokers, who demanded better guidelines and longer hours to be able to square off their trades. Later, both BSE and NSE decided to keep equity and equity derivatives markets open until 5:00 pm.
Dealers with positions in the futures and options segment came under added pressure as they were unable to square off their positions ahead of the expiry of the current month’s derivative contracts.
BSE’s daily turnover — the total value of shares traded — jumped to nine times the average daily turnover at nearly Rs 40,000 crore.
NSE had faced a similar systems glitch in 2017 that led to a five-hour-long shutdown. Sebi had then called for a review of the bourse’s contingency plans.
Eventually, NSE resumed trading at 3:45 pm in an extended session till 5 pm. The extended session allowed some normalcy to resume. The market’s price discovery mechanism had gone into turbulence because of the trading halt.
Dealers with positions in the futures & options segment came under added pressure as they were unable to square off positions ahead of Thursday’s expiry of February series derivative contracts.
Sebi said in the light of “exceptional situation,” it gave permission to the stock exchanges to extend the trading hours.
