NSE may submit preliminary report to SEBI on trading halt by Friday.
NSE may submit preliminary report to SEBI on trading halt by Friday.

Market regulator Securities and Exchange Board of India (SEBI) asked the National Stock Exchange (NSE) to conduct “a detailed root cause analysis of the trading halt witnessed at NSE” on Wednesday. The regulator also questioned the exchange on the failure on not migrating to the disaster recovery site.

SEBI has asked “NSE to submit its report at the earliest.” According to a news report, the exchange is expected to submit the report in 48 hours.

The exchange had informed that trading was halted at 11.40 am on February 24 due to “issues with the links with telecom service providers.”

Taking into account this exceptional situation arising out of the ‘trading halt’, SEBI took a call of extending the trading hours from 3.30 pm to 5.00 pm at NSE, Bombay Stock Exchange, and Metropolitan Stock Exchange of India on Wednesday. During the halt, SEBI stated that it was in constant touch with NSE officials and continued to monitor the situation closely.

The news report quoted a source saying that SEBI’s top officials are displeased about the fact that NSE has been facing technical glitches regularly. “NSE needs to work on its technical architecture, which is facing serious issues on a regular basis.”

NSE will have to strengthen its technology by investing more on it. However, it is found that it is avoiding that before the initial public offering, so that balance sheet is not impacted.

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