SEBI seeks explanation from NSE on trading halt
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The Securities and Exchange Board of India (Sebi) has initiated a probe into the National Stock Exchange (NSE) after the country’s largest bourse halted trading on Wednesday because of a technical snag, said two people, including a government official, aware of Sebi’s decision.
Sebi said it has advised NSE to conduct a detailed root-cause analysis of the “trading halt" and also explain the reasons for trading not migrating to the disaster recovery site, the people said on condition of anonymity.
“The technical advisory committee (TAC) of Sebi is looking into the entire matter and Sebi has asked NSE for clarifications on the disruption. The TAC will be ready with a preliminary report within a week or so," one of the people cited above said.
“Sebi will probe NSE primarily on two counts—adherence to compliance and technology and any potential laxities by the staff. It is also to be probed if there is any deliberate force acting behind such widespread trading disruption for such a long period," the person said.
Sebi may launch an in-depth investigation and initiate adjudication proceedings against NSE if any fault is found at the exchange level, the person said.
“It has to be examined whether the technology employed by NSE is strong enough or not and if it is in line with Sebi’s requirements," the person said.
He added that the regulator may also examine if NSE is struggling to handle the load due to the large concentration of trades in all product segments and whether any curtailment in products (traded on NSE) is required.
Sebi said it has advised NSE to conduct a detailed root-cause analysis of the “trading halt" and also explain the reasons for trading not migrating to the disaster recovery site, the people said on condition of anonymity.
“The technical advisory committee (TAC) of Sebi is looking into the entire matter and Sebi has asked NSE for clarifications on the disruption. The TAC will be ready with a preliminary report within a week or so," one of the people cited above said.
“Sebi will probe NSE primarily on two counts—adherence to compliance and technology and any potential laxities by the staff. It is also to be probed if there is any deliberate force acting behind such widespread trading disruption for such a long period," the person said.
Sebi may launch an in-depth investigation and initiate adjudication proceedings against NSE if any fault is found at the exchange level, the person said.
“It has to be examined whether the technology employed by NSE is strong enough or not and if it is in line with Sebi’s requirements," the person said.
He added that the regulator may also examine if NSE is struggling to handle the load due to the large concentration of trades in all product segments and whether any curtailment in products (traded on NSE) is required.
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