Security and exchange board of India sought a detailed report from NSE on the glitch in its system that halted trading for hours even as the exchange informed the capital markets regulator that the problem does not seem to be related to cyber security.
The exchange made a submission to the regulator on the glitch and informed that all executed trades in cash and F&O (Futures & Options) segments remain valid.
Trading activities on the country’s largest exchange were halted for over three hours this morning and the operations resumed at 12:30.
“On preliminary analysis, the technical problem apparently is related to software. It does not seem to be related to any cyber security related compromise,” the exchange told Sebi during the meeting.
Late in the evening, a statement issued by Sebi also provided various other details given by the exchange to it.
Sebi has directed the NSE to submit a detailed report on the matter, the statement said.
The regulator has also asked the exchange to have a review of their ‘Business Continuity Plans’ as well as submit a detailed plan on the measures that are going to be taken to avoid such recurrences.
“Sebi is also looking at the matter comprehensively and will interact with different stakeholders to explore as to what more needs to be done to avoid such recurrences,” the statement noted.
During the meeting attended by senior officials from the NSE and Sebi, the exchange informed that cash market segment did not function normally at the time of opening of market due to technical problems and therefore was closed.
After giving notice to the market, the F&O segment was also closed.
“Two attempts to reopen the market were not successful. Finally the market was pre-opened at 12.15 pm and opened at 12.30 pm for both cash and F&O segments.
“However, a market display problem was observed in the cash market and was rectified subsequently,” the statement said quoting submissions made by the NSE.
According to the exchange, the matter is being examined by its internal technical team and external vendors, to analyse and identify the cause which led to the issue and to suggest solutions to prevent recurrence.
In the afternoon, Sebi said it was closely monitoring the situation