Sebi probes NSE Friday 'crash'
06 October 2012
The Nifty, the 50-stock barometer of the National Stock Exchange (NSE), saw a 15-per cent plummet on Friday morning, caused by a technical glitch. The exchange soon recovered to come in line with the Bombay Stock Exchange's Sensex, which rose to a 15-month record of over 9000.
The plunge triggered the Nifty's circuit filter, closing the cash market automatically at 9.50 am. Normal trading resumed 15 minutes later at 10:05 am.
Stocks like Sesa Goa, State Bank of India, Axis Bank, Cipla, HCL Technologies, Bharti Airtel, Hindustan Unilever and Tata Motors quoted 6-17 per cent lower on the NSE during this period, though trading at the Bombay Stock Exchange, however, was error free.
The exchange blamed the glitch on ''abnormal orders resulting in multiple trades at low prices''.
According to the exchange, the market circuit filter got triggered due to entry of 59 erroneous orders which resulted in multiple trades for an aggregate value of over Rs650 crore.
A spokesperson for the NSW said orders entered by Emkay Global Financial Services Ltd led to trades valued at Rs650 crore caused the drop.
The Securities & Exchange Board of India is probing the matter, while Emkay Global is barred from trading at least at present.