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ACC scrip traded at Re 1, BSE broker loses Rs 1 bn

An error in punching bids proved disastrous for a BSE member broker on Monday when he lost over Rs 1 billion in a single transaction on the very first day of the removal of the circuit filter.

The incident took place at around noon when a Bombay Stock Exchange broker, saw to his utter surprise that 14,07,517 shares of ACC were sold at a price of Re 1 and Rs 68 at a time when the prevailing price of the scrip was Rs 144.

"The bid was for a single trade of 10,00,500 shares and it appears that the selling price was mistakenly punched for Re 1 instead of Rs 144 and the entire trade was executed within seconds," said Mahesh Bajaj, a CSE member, who also has a BSE terminal.

Reuters adds: The 'mistrade' occurred when an unidentified brokerage keyed in a sell order at Re 1 and the system executed the order, something that never could have happened before Monday.

"Under the earlier trading system the deal would not have gone through because of the 8 per cent limit," said one trader, referring to a limit that triggered an automatic suspension of trading in a stock.

Under new rules which took effect on Monday, there are no limits on price movements in 31 stocks, including ACC. These are stocks on which options trading began the same day.

This indicates that the removal of the circuit filter at the two premier stock exchanges of the country might cost dearly to those who dared to become even slightly casual.

An indication of this was seen on the very first day of its removal at the Bombay Stock Exchange.

Bombay Stock Exchange officials were unavailable for comment, but traders said it was likely the trade will be annulled.

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