Updated: February 25, 2021 12:24:10 am
The National Stock Exchange (NSE) on Wednesday abruptly shut its cash and derivatives segment, following a major technical glitch that disrupted trading for nearly four hours. The Securities and Exchange Board of India (Sebi) has sought a report from the NSE on shutdown of the exchange.
The market regulator had asked the NSE to conduct a root-cause analysis of the “trading halt” witnessed and also explain the reasons for trading not migrating to the disaster recovery site.
Sebi has asked the NSE to submit its report at the earliest. The regulator said the NSE was also advised to keep the market participants updated with the evolving developments. The “trading halt” continued till 3.30 pm. “In view of the exceptional situation arising out of the ‘trading halt’, it was decided to extend the trading hours from 3.30 pm to 5.00 pm at the NSE, BSE and MSEI,” Sebi said.
The NSE is likely to submit a preliminary report by Friday, sources said. While trading was officially halted at 11.40 am, stock and index prices had stopped updating from 10.08 am, market sources said. “NSE has multiple telecom links with two service providers to ensure redundancy and we have received communication from both the telecom service providers that there are issues with their links due to which there is an impact on NSE system,” said an NSE spokesperson.
Meanwhile, the BSE continued to function normally.
Jimeet Modi, CEO & founder, Samco Ventures, said, “The biggest question is why was the entire market shut just because index feeds were not refreshing? Feeds for underlying contracts were fine and so was order matching, so why shut down the entire market?”
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