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Business
10 Jul 2017

Why India's biggest stock exchange had to shut

NSE technical glitch plays havoc with traders

Technical glitches are suddenly becoming a common affair in bourses. Previously, this month a glitch occurred in NASDAQ, which set Apple, Microsoft and other key stocks at a fixed rate.

National Stock Exchange today suffered a major glitch, price quotations for individual stocks and indexes were not getting updated. Bombay Stock Exchange, however, was working fine during this period.

Here's all about it.

In context

NSE technical glitch plays havoc with traders
How it started

NSE

How it started

The problem was noticed at around 9:20 am on Monday. After the market opened it was noticed that the NSE rates were not shifting in tandem with the BSE rates.

This resulted in NSE stopping their trading in the futures & options segment. Around 10:05 am, Ravichandran, Interim Chief of NSE informed that they were trying their best to restart the market.

BSE

BSE was fine

Meanwhile, upon query, BSE CEO Ashish Chauhan replied that the Bombay exchange was not facing any technical glitch and trading took place as usual.

NSE was supposed to restart its cash and F&O trading at 10:45 am again but they failed, as the technical glitch apparently didn't get solved. Authorities said they'll share the exact timing as soon as things would fall in place.

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Don't go by appearances

Cash Market segment

Don't go by appearances

NSE Cash Market segment pre-opened at 11:00 am, however, cash and futures & options segments markets, which was scheduled for an 11:15 am opening, didn't.

The bourse said that the technical glitch has persisted and the opening of both Cash and F&O segment market got delayed.

"Don't go by the 'neat' message, we are still working on the issue," said NSE.

Sebi

Market is now working

FinMin official informed that the government and SEBI have been made aware of the issue.

Finally, at 11.59 am, NSE informed that the cash market segment will pre-open at 12:15 pm and end at 12:22-12:23 pm.

"In F&O Segment - members shall be given 15 minutes window to cancel their outstanding orders. The cancellation window shall be available from 12:15 to 12:29 pm."

Normalcy has returned

Fixed

Normalcy has returned

Normal trading finally began from 12.32 pm. The Nifty traded up 57.25 points or 0.59 percent at 9,723.05.

It is not known yet if any major damage has occurred to the traders due to this disruption. Authorities should keep a strict vigilance to prevent this kind of hiccups, as they tend to wreak unnecessary havoc on the Dalal Street.

Amiss

Things have again gone amiss

Brokers are complaining that there is a huge difference in ask and bid price of NSE stocks.

Dipan Mehta, Member BSE & NSE informed Moneycontrol, "The prices are not moving. Volumes are not increasing the way it should be on a day like this."

NSE said that things are functioning properly. There is a display issue in the cash segment which is being fixed.

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