Tribunal asks NSE to respond on freak trading plea

Tribunal asks NSE to respond on freak trading pleaThe Securities Appellate Tribunal (SAT) has asked National Stock Exchange (NSE) to file its response to an appeal filed by brokerage firm Emkay Global Financial Services on the freak trading incidence.

The tribunal also asked more details from the exchange of previous instances of annulment. The SAT on Thursday asked Emkay Global Financial to provide details on trading volume for 90 days prior to the freak trade. The case is expected to come up for hearing in tribunal on June 19.

Emkay Global Financial Services, which is a Mumbai-based brokerage firm, had approached the tribunal after the NSS announced its decision not to cancel erroneous trades carried out by the broking in the previous year. An erroneous trade in October in the previous year had led to a fall of 900 points on NSE's benchmark index Nifty and even halt in overall market trading.

The brokerage suffered a loss of Rs. 51 crore due to this error and had later asked the stock exchange to cancel the trades that were a result of the erroneous trade at the NSE. The NSE had ruled that 59 erroneous orders worth Rs. 650 crore were placed by Emkay that led to the halt in trading and responsible persons have been restricted from trading.