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Sebi may probe Zee's freeze on NSE

BS Markets Bureau

The Securities Exchange Board of India plans to probe into the strange buyer freeze on the Zee Telefilms counter on July 31, 2001 on the National Stock Exchange.

The matter follows a complaint by a New Delhi-based broking outfit which is said to have suffered huge losses following the buyer freeze between 1445 to 1530 hrs (IST) on the said day.

Sebi officials confirmed and said, "We are looking into the buyer freeze in the scrip on that day and the data on the scrips movement, including volumes, price, buyers, sellers, intra-day movement etc. have been called from NSE."

The problem started when the Zee Telefilms counter came to a buyer freeze on the dummy circuit filter at Rs 84.55. This happened on both the NSE and the Bombay Stock Exchange.

Meanwhile, BSE's surveillance department automatically revised the upper limit to Rs 99 as per regulation, ensuring uninterrupted trading.

Whereas on NSE the counter remained frozen and untradeable between 1445 to 1455 hrs (IST). Later, the limit was raised by a mere half per cent, Rs 85 on NSE. Though the scrip continued trading at BSE, NSE's freeze continued till the close of trading hours.

The freeze prevented the investors to cover up their sold position in Zee Tele or make any fresh purchases while regulation provide them a right to uninterrupted trading in the scrip, read the complaint.

The complainant has alleged gross violation of dummy circuit regulations and the rights of hundreds of investors. The authorities have asked for a mechanism to provide immunity to its members from financial losses in such circumstances. The results and recommendations of the probe are expected shortly.

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