SEBI July 24 meet | Panel may discuss June 4 pricing issues in Bank Nifty

The technical advisory committee of the Securities and Exchange Board of India (Sebi) may discuss pricing issues that occurred on June 4 in the Bank Nifty at its meeting on July 24. The panel is headed by Indian Institute of Technology, Madras professor Ashok Jhunjhunwala.

The National Stock Exchange (NSE) was hit by a trading glitch on June 4 as prices in the option segment of Bank Nifty were not reflecting or updating on terminals linked to the country’s largest bourse.

June 4 being the weekly expiry day, volatility was high, especially in the Bank Nifty which is the most active of indices. That day, the difference in the buy and sell price of the Bank Nifty was more than Rs 100, a situation that is highly impossible, market observers told Moneycontrol. The issue had left many brokers in the lurch and resulted in huge losses for investors.

The market regulator had sought a clarification from NSE and the exchange recently submitted its route cause analysis of the event. "The exchange has not reported the incident as a technical glitch," sources told Moneycontrol.

This is not the only instance of NSE's trading systems facing technical glitches. In September and October 2019, the exchange faced three technical glitches. At that time, the regulator had levied a penalty of Rs 50 lakh.

Moneycontrol has sent an email query to the exchange on July 21 and is yet to hear from them.