NSE issues red alert

The National Stock Exchange NSE on Thursday sounded a major warning to investors and market participants, asking them to remain cautious in the wake of heightened market activity and intense volatility. NSE8217;s warning came even as the exchange said it had unearthed irregular transactions in the cash market and the derivatives segment.

The NSE red alert to its members has come at a time when the markets are booming and benchmark indices are reaching all-time high levels every day. The exchange, in two separate notices marked 8216;8216;For Special Attention8217;8217;, has also warned of strict action against high volumes in illiquid stocks/options contracts with huge price differences both on the buy and sell sides.

Chitra Ramakrishna, deputy MD, NSE, told The Indian Express, 8216;8216;We as an exchange, release formal warnings to investors from time to time. The one which we have issued today is a kind of trading alert for investors as well as market participants so that they can take informed decisions while dealing on the exchange.8217;8217;