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Home >News >India >Recent NSE trading glitch not anticipated, cost us immensely: FM Sitharaman

Finance Minister Nirmala Sitharaman on Monday spoke about the recent National Stock Exchange (NSE) glitch that occurred on 24 February 2021.

"The NSE glitch seen recently was not anticipated but that glitch cost us immensely," said Sitharaman in the first reaction from the Indian government on the 24 February trading glitch.

Addressing the 45th Civil Accounts Day she said the Controller General of Accounts (CGA), who is the bookkeeper of government accounts, has adopted great systemic reforms.

Sitharaman said that to keep government accounts transparent, the CGA will have to adapt and keep pace with changing technology to keep government account transparent.

"Seamlessness of payments is more important,... I will bring it here as an example to say even where complete foolproof systems are laid, you find in NSE a couple of days ago when there was a glitch, a kind of technology-driven glitch, which nobody could have anticipated, but that glitch has caused us immensely and lessons are being learnt.

"Maybe that was an issue of interoperability between the two exchanges, but that is the kind of thing where seamless digital payment is the goal that we have to aspire for. That was also an example that tells us about how seamless payment modes or technology-driven platforms can face. So, taking lessons from that, I would think seamless digital payments is something you have to clearly have a roadmap for," Sitharaman said.

Moreover, speaking about the economic condition of the country amid the Covid-19 pandemic, Sitharaman added that timely government expenditure during pandemic gave succour to people at the bottom of the economy.

The minister suggested that the CGA should move towards being more paperless and user friendly in its functioning and also aim for greater integration with the Department of Expenditure and states.

The NSE had on Wednesday halted trading on the stock exchange for nearly four hours due to a technical glitch.

Activity in some segments started facing glitches since around 1000 hrs, within minutes of the markets opening at 0915 hrs, and all activity at NSE ground to a halt at 1140 hrs.

However, trading at the BSE continued amid the outage at NSE, ensuring that Indian capital markets remained operational.

The issues got sorted in the afternoon, and in an unprecedented move, the bourses extended their trading hours till 1700 hrs as against the usual end of trade at 1530 hrs, probably to make up for lost volumes.

NSE attributed problems at its end to failure in telecom connectivity as services from both the telecom operators it uses went down simultaneously.

Taking strong note of the events, capital markets regulator Sebi sought an explanation from NSE for trading "not migrating to the disaster recovery site" and asked the bourse to submit its report at the earliest.

With inputs from PTI

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