Mumbai: The Securities Appellate Tribunal (SAT) has disposed of an appeal filed by brokerage Emkay Global Financial Services Ltd against the National Stock Exchange of India Ltd’s decision not to annul erroneous trades carried out by the broking firm in October 2012.
In May 2013, the bourse denied the brokerage’s application to cancel the erroneous trades that had resulted in the 50-share Nifty index dropping by 15.5% on 5 October 2012. Trading was halted for 15 minutes.
The tribunal has directed NSE to consider the settlement proposed by Emkay along with Prakash K Shah Shares and Securities Ltd and release the withheld payment within two weeks.
The SAT direction came after NSE’s lawyer E.P. Bharucha told the tribunal that the settlement proposal is not in contravention of any of the bye-laws of the exchange.
A spokesperson for Emkay said the brokerage is still studying the SAT order and cannot comment.
“In this inimitable case, the annulment proceedings accordingly have come to an end. The payments (as per the settlement plan), will not come in the way of disciplinary proceedings that may be considered by the disciplinary action committee separately," said an NSE spokesperson.
Following the crash, NSE had said 59 erroneous orders worth 650 crore placed by Emkay had triggered the halt and the member responsible had been disabled from trading.