NSDL glitch delays settlement of stock trades
What's the story
A technical glitch at the National Securities Depository Ltd (NSDL) has delayed the settlement of stock trades for several investors. The issue, which occurred on Tuesday and Wednesday, was due to a problem with inter-depository functions. As a result, shares bought on these days are yet to be credited to buyers' accounts.
Technical disruption
Backup servers activated, most issues being resolved quickly: NSDL
In a disclosure to the BSE, NSDL acknowledged the technical glitch as a network connectivity issue with another depository. The company said this resulted in a temporary disruption of certain depository services but assured that the problem is being resolved. NSDL's CEO Vijay Chandok also confirmed that backup servers have been activated and most issues are being resolved quickly.
Market reaction
Entire settlement process affected
The glitch has affected the entire settlement process on Wednesday, brokers said. Typically, depositories credit shares to buyers' accounts by 10:30am local time the day after a trade. However, delays were observed for clients with custody or demat accounts with both NSDL and rival Central Depository Services (India) Ltd (CDSL).
Volume impact
Delivery volumes of close to ₹40,000cr could face settlement issues
The settlement for trades executed on Tuesday was pushed from 10:30am to 6:30pm and then to 10:30pm. It is likely to be further extended. "Assuming an average delivery of 30% to traded volumes, delivery volumes of close to ₹40,000 crore could face settlement issues," a broker said. The full extent of the glitch's impact on trading volumes remains unclear as of now.