SEBI Seeks Report from NSE on "Trading Halt" Due to Technical Glitch

The Securities and Exchange Board of India (Sebi) demanded a briefing from the National Stock Exchange (NSE) on the shutdown of trading at the exchange on 24 February. The NSE may send a preliminary report later today.

It was informed by NSE that trading was halted at 11.40 am today due to "issues with the links with telecom service providers", SEBI said in a statement.

On Wednesday, all NSE segments were suspended at 11:40 a.m. due to a technological glitch and Nifty was frozen at 14,820.45, up 112.65 points or 0.77 percent.

All outstanding orders were terminated immediately when the business was reopened. Broker service providers requested their customers to replace their orders after the market opened at 3:45 p.m.

SEBI was in regular contact with NSE officials and continued to track the situation closely. NSE was also asked to keep market members up-to-date with emerging trends.

Owing to many technological glitches, the capital markets regulator had earlier placed a penalty of Rs 50 lakhs on the exchange. Sebi has a plan to refund investors for damages due to technological issues. The system of compensation, however, has yet to be finalised.

As the "trading halt" lasted until 3.30 p.m. In consideration of the extraordinary situation resulting from the "trading halt," it was agreed to extend the trading hours from 3.30 p.m. to 5.00 p.m. at NSE, BSE and MSEI.

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