SEBI demands preliminary report & detailed root analysis from NSE for the halt in trading which occurred on Feb 24

The Securities and Exchange Board of India has asked for a report from the National Stock Exchange on recent shutdown of trading at the exchange board on February 24. NSE will submit a preliminary report in the next 48 hours with a detailed root analysis after the preliminary report.

Trading at the NSE Index was halted for day on Feb 24 following a technical glitch. SEBI top officials are said to be upset with NSE about the regular technical glitches on it’s exchange. A similar situation which occurred on July 10, 2017, SEBI imposed a penalty of Rs 50 lakhs on NSE due to several technical glitches.

SEBI plans to compensate investors for losses they occurred due to technical difficulities. However, the method of compensation is yet to be finalized by the exchange board. NSE stated the reason for halt in trading was due to issues with the links with telecom service providers.

It was reported that SEBI remained in constant touch with NSE Official’s & remotely continued to monitor the whole situation and also advised NSE to keep the market players updated as the situation progress.

Due to the halt, it was decided to extend the trading hours from 3:30 PM to 5:00 PM for National Stock Exchange (NSE), Bombay Stock Exchange (BSE) and Metropolitan Stock Exchange of India (MSEI).