Emkay says NSE disallows annulment of erroneous trades
Emkay says it is considering legal action, including challenging the decision
Mumbai: Emkay Global Financial Services Ltd said on Thursday the National Stock Exchange of India Ltd (NSE) denied its application for annulment of erroneous trades carried out by the broking firm last year.
add_main_imageThe brokerage is considering legal action, including challenging the decision, it said in a filing with BSE Ltd.
“We have 45 days to appeal in the apex tribunal, Securities and Appellate Tribunal (SAT). Our legal counsel J. Sagar Associates is expected to file an appeal in SAT at the earliest,” said a person familiar with the development requesting anonymity.NextMAds
The erroneous transactions saw the 50-share Nifty index of the NSE drop 15.5% in the first half of trade on 5 October last year and led to a 15-minute trading halt as the plunge triggered the index circuit filter.
“We intend to exercise our statutory right to appeal the decision. Therefore, it would not be possible to make public comments on merits of the case,” the brokerage said in a press release.
“We wish to reiterate that we remain well capitalized and continue to conduct our business as usual, servicing clients across institutional and retail segments of the market,” it added.
Following the flash crash, NSE had said that 59 erroneous orders worth Rs.650 crore placed by the broking firm triggered a brief halt in trading and the member had been disabled from trading.
The trades were non-algorithmic in nature, according to the exchange. However, freak trades triggered by erroneous algorithms have caused a trading freeze in Nifty futures and some stocks even before this incident.
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