InvestorQ : What has been the response of the NSE to the trading halt on the exchange on 24 February?
indhumathi Sayani made post

What has been the response of the NSE to the trading halt on the exchange on 24 February?

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1 month ago
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The NSE has gone ahead and defended the handling of the stock exchange trading shutdown on 24 February. It may be recollected that the prices had stopped updating after 10.00 am and NSE had officially announced trading shutdown at 11.40. The trading subsequently began only around 3.45 and this was part of a special session offered by the NSE for traders to square off their positions in the market till 5.00 pm.

During the day, when NSE trading was shut, the BSE continued as normal and cash market positions could still be closed out on the BSE. However, in most of the cases it was the risk management systems or RMS of the brokers that force-closed intra-day equity positions on the BSE. However, F&O positions were stuck till late in the evening when trading resumed on the NSE. Already, the SEBI and Finance Ministry have asked for a detailed report.

The NSE has, however, defended its decision to continue with its primary systems and not activate its disaster recovery site. That was one of the queries raised by SEBI as to why the DRS was not activated as should have been the practice. NSE has clarified saying it was only done after evaluating all options to resume trading available in front of them. In the opinion of the NSE, this was the best among the options available.

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