Technical Glitch at NSE: Trading Stopped for Over 4 hours
A temporary telecom glitch at NSE, India’s largest stock exchange has taken the financial markets by storm and also put a big question mark on the credibility of digital infrastructure of the country’s government and regulators.
Trading was disrupted on 24 Feb 2021 for four hours due to technical glitch at NSE. The issue started post 10:08 A.M as tickers for all indices including the Nifty stopped getting updated. This in turn led to halting of trading in F&O segment at 11:40 A.M and at 11:43 AM for cash segment on the NSE, even though the other prominent exchange, BSE continued to function normally.
Trading was suspended on the NSE for the rest of the normal trading hours which is bound to have caused serious concerns for investors and traders. What compounded the situation further was that it happened on the penultimate day of the February F&O expiry. The last two days of expiry witness significant increase in F&O volumes due to rollover and squaring off activities, and any disruption in trading during the period is bound to cause inconvenience to all market participants.
The NSE remained shut even as the last 30 minutes of trading commenced at 3:00 P.M. which led to few of other large brokerage firms taking a call to square off their client’s intraday cash position on the BSE. While it is possible for NSE intraday cash positions to be squared off on the BSE, the same is not possible for F&O positions which would need to be squared off on the NSE.
So what happens if such glitches reoccur in the future?
Though SEBI is looking into the matter of trading glitches that took place at the NSE, it is time strict regulations are put in place and action taken, such that they bind all parties concerned. The regulation should clearly state the arbitration recourse available to investors, who have suffered losses due to trading glitches.
Arihant Team stands out to provide support to its clients in such difficult times:
We at Arihant Capital are proud to have an expert team and with 28+ years of our rich experience, we were aware that NSE will provide some alternate option to overcome this technical glitch. Therefore, we asked our clients to hold their positions and provided them personalized advice through our dedicated Relationship managers who asked clients to wait for further communication from NSE.
We were proven right and NSE extended trading time with pre-opening at 3:15 PM and normal trading window opens at 3:45 PM to 5 PM because of which our clients were able to sell their position at lucrative prices, without incurring any losses. This was unlike a lot of renowned discount broking firms that had to face investors backlash as their equity positions were abruptly closed during the exchange glitch, leading to huge losses in client’s account.
It is at tough times like these, when we face a litmus test, that the true strength of a broking firm and its ability to service its clients is realized.
We are committed to giving our customers the best services and holding to our core values which always place our client’s interests first. Our goal is to create wealth for our customers through sound financial advice and we help them meet their financial goals with passion and integrity.
Further we boast of providing personalized service through our dedicated relationship managers to our clients who provide round the clock services to clients. No hidden charges are an extra icing on the cake with Arihant Capital, unlike other firms who claim to do deep discounting end up levying hefty charges on fund transfer, fund withdrawal, pledge charges, etc.
Instead of charging quarterly, we provide them hassle free Lifetime Zero AMC Demat account. We do not levy any charge for auto square off feature, like other service providers. State-of-the-art digital infrastructure, user friendly Mobile App and a customer-friendly environment are just some other advantages that we are proud to offer to our customers. We would like to thanks our clients who have entrusted us with their hard earned money and given us this valuable opportunity to serve them. It shall be our continuous endeavor to provide them excellent services in the future as well.