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Last Updated : Jul 10, 2017 01:05 PM IST | Source: Moneycontrol.com

Traders concerned about their NSE F&O trades worth Rs 77K crore; 10 things to know

Benchmark indices hit a fresh record high in opening trade on Monday, but soon after the opening NSE rates were not moving in tandem with the BSE.


Due to technical reasons in cash market, trading has been stopped in both cash and F&O segment of NSE, which halted trading at least for one exchange while trading continues on the BSE.
Traders concerned about their F&O trades worth Rs 77,000 crore taken place on the NSE.


Benchmark indices hit a fresh record high in opening trade on Monday, but soon after the opening NSE rates were not moving in tandem with the BSE.

The S&P BSE Sensex surged to a fresh record high of 31,595.46 in opening trade while the Nifty50 rose to a high of 9,765.90.

Here’s how it will impact you:

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1. CM segment shall pre-open at 12:15 hrs and shall end at 12:22 - 12:23 hrs (random closure). CM segment normal market and F&O segment shall open at 12:30 hrs. In FO Segment - members shall be given 15 minutes window to cancel their outstanding orders. The cancellation window shall be available from 12:15 to 12:29.

2. The shut-down of NSE markets is bad news for traders, who mostly undertake intraday trades.

3. The outage of NSE will also create difficulties for arbitrageurs, who use the price differential in stocks between to earn profits between two exchanges. There was a wide difference between the rates of NSE and BSE for almost 1 hour in the morning before the exchange was shut down.

4. To hedge price risks, traders will now have to take counter positions on NSE, but this may become problematic if the BSE does not open for trade on Monday.

5. Such outages do not augur well for the NSE, which has been trying to get listed and would thus hurt investor sentiment.

6. All the pending orders might stand canceled, suggest experts. Trading is currently not happening at all. It is a bigger problem than a mere rate, there should not be any panic though,” Deena Mehta, MD, Asit Mehta Investment Intermediates told CNBC-TV18, adding that there is a good chance that the exchange will cancel all the pending orders.

7. Traders who went short on Friday, in other words, sold shares that they don’t own might have to shell more money if they are not able to square off their trades by the end of the day.

8. The decision to allow BSE to trade even when NSE had shut down may not go down too well. This seems clearly unfair, said a trader to Moneycontrol.

9. Problem of Bad Deliveries: If someone has short of sold on NSE cash market with a view to cover during the day. If the market doesn’t open, are at risk of auction and their penalties.

10. Lack of clarity from NSE puts traders at risk. The pre-open session was initiated by NSE three times but failed due to technical reasons. Lack of communications would leave traders stranded in terms of trades they have already initiated.

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First Published on Jul 10, 2017 10:58 am
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