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Rediff.com  » Business » Emkay Global resumes trading on NSE; stock rebounds 10%

Emkay Global resumes trading on NSE; stock rebounds 10%

October 10, 2012 11:53 IST
Emkay Global on Wednesday resumed operating on NSE, after the bourse reinstated the brokerage firm's trading facility on its platform following fulfilment of obligations over the erroneous trade of last Friday.

"After a review of the facts and events surrounding the bona fide error that led to the placement of an erroneous sale order, the NSE has now reinstated our trading facility both on cash, derivatives and currency segments," Emkay Global Financial Services said in a statement.

"We have resumed providing services to our clients on the NSE today consistent with past practice, putting behind us the accidental occurrences of October 5, 2012," it said.

NSE had disabled trading facility of Emkay after the erroneous trades executed by the brokerage firm led to a flash 900-point crash in the benchmark Nifty last Friday morning, halting the entire trade at NSE for about 15 minutes.

Shares of Emkay, which crashed 27 per cent in the last three trading sessions today bounced back sharply, climbing 10 per cent to Rs 27.75 on the BSE.

An NSE official said last night said that Emkay has fulfilled its obligations to the exchange.

However, the brokerage firm would subject all its trading and risk management systems to a further rigorous examination and has taken various steps to avert any such manifest error in future.

"We are well capitalised and continue to conduct our business for both institutional and retail clients. We continue to work with NSE and the regulators to resolve issues arising out of the bona fide human error," Emkay added.

Admitting the error on its part, Emkay Global had said, "On October 5, while executing an order to transact a Nifty cash basket, in Nifty-50, a dealer committed a bona fide error.

"The error was in entering the value of the order as the quantity of Nifty-50 basket to be transacted. The order got transmitted to the NSE trading server as a single large Nifty basket order comprising of Nifty 50 stocks."

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Tags: NSE, Emkay, BSE, Nifty, ONSE