Search the Internet          Tips  Sites: Finance, Investment

NSE resumes trading, freak deals cancelled

Trading at India's National Stock Exchange resumed at 1115 hrs (IST), after a one-hour suspension triggered by a 40 per cent jump in the index following two freak deals, an exchange official said.

Trading was suspended after the 50-issue National exchange index soared 40 per cent, mainly due to a sharp rise in the share price of index heavyweight Reliance Petroleum, which vaulted six times over its previous close.

Associated Cement Companies leapt by over 51 per cent.

"The market remained closed from 0955 hrs to 1110 hrs (IST) due to entry of apparently non-genuine orders in respect of certain securities like Reliance Petroleum and ACC," the official, who did not want to be named, told Reuters.

Trades in both the securities were cancelled, she said.

One share of Reliance Petroleum was dealt at Rs 300, compared with the previous close of Rs 46.95 while 400 ACC shares traded at Rs 209, higher than Tuesday's close of Rs 138.

This sent the national index catapulting to 1,494.60 points, a 39.71 per cent rise on Tuesday's close of 1,069.80.

The Securities and Exchange Board of India introduced an index-based market-wide circuit breaker system from Monday to check excessive volatility.

Under the new rules, trading in all shares on the exchange will be halted for various periods, depending on the amount of variation in the index.

According to the Sebi rules, trading will be halted for the rest of the day in the case of a change of 20 per cent or more in the index.

YOU MAY ALSO WANT TO READ:
ACC scrip traded at Re 1, BSE broker loses Rs 1 bn
BSE annuls ACC trade at Re 1

Tell us what you think of this report