India's biggest stock exchange grapples with system fault ahead of IPO

NSE apologised for trading ‘glitch’ in the early India Tv

NSE apologised for trading ‘glitch’ in the early session today

The NSE reopened at 1230 hours but traders said quotations for individual stock prices were still not updating properly or suffering from wide gaps in bid and offer prices.

The NSE also said the currency derivative segment was functioning normally. A Dalal Street broker said: "Small brokers and retail investors were not able to get proper quotes even after 12.30 pm when the exchange claimed that trading was progressing smoothly".

On Monday, the BSE Sensex was up 355.01 points at 31,715.64 and the NSE Nifty was up 105.25 points at 9,771.05.

NSE apologised for the glitch saying it is examining the matter to identify the cause.

The exchange had stopped trading in cash as well as F&O (futures and options) segments while stock prices were also not getting updated.

"For us the main concern is liquidity for the stocks that we are operating in today because only BSE is on", said Gautam Sinha Roy, a fund manager at Motilal Oswal Asset Management Co. According to the recommendation, which NSE was against adopting, any eventuality arising out of a technical snag such as the one that paralysed the bourse could have been avoided. "The system was expected to be rectified quickly and shifting to the BCP site would have taken longer", it said, adding that the glitch was not related to any kind of cyberattack.

The Finance Ministry has asked NSE and the market regulator, Securities and Exchange Board of India, to submit a report within the next two days on the reasons for the disruption, a senior finance ministry official said.

The NSE is the largest stock exchange in India in terms of total and average daily turnover for shares every year since 1995, as per Sebi data.

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