Home World Business NSE trading resumes after tech glitch: What happens to your orders?

NSE trading resumes after tech glitch: What happens to your orders?

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Experts say investors in the cash segment should not worry much

Puneet Wadhwa  |  New Delhi  July 10, 2017 Last Updated at 12:50 IST



NSE is the leading stock exchange in India and the fourth largest in the world by equity trading volume in 2015, according to World Federation of Exchanges (WFE).  The average daily turnover, according to the exchanges’ website in the F&O segment, stood at Rs 5,33,261.14 crore in 2017-18, up 40% from Rs 3,80,525.41 crore in 2016-17.


Impact on investors / traders


So, should you be worried in case you placed your order in the cash and/or the F&O segment? And, what do you stand to lose in such a situation?


Experts say investors in the cash segment should not worry much, as their trades on the NSE can be squared off against fresh orders on the Bombay Stock Exchange (BSE). Since most stocks are available on both the exchanges, the cash segment impact would have been limited.

Also Read: FPIs, MFs pump in over Rs 97,000 crore in stock markets in six months


“Since the problem is mostly in the F&O segment, the market regulator – Securities and Exchange Board of India (Sebi) – needs to step in. There will not be much problem in the cash segment, as the trades can be squared off in the Only those traders / investors that have a derivative position will face difficulty. I think Sebi will step in and the trading hours could be extended,” says G Chokkalingam, founder and managing director of & Advisory.


Chandan Taparia, derivative analyst at Motilal Oswal, on the other hand, says that the orders placed and executed before 9:55am will be accepted. 


“The orders that were placed and could not be executed before the problem started will be cancelled. Investors will have to place orders afresh once the exchange opens for business and the system stabilises,” he says.

NSE trading resumes after tech glitch: What happens to your orders?

Experts say investors in the cash segment should not worry much

Experts say investors in the cash segment should not worry much

NSE is the leading stock exchange in India and the fourth largest in the world by equity trading volume in 2015, according to World Federation of Exchanges (WFE).  The average daily turnover, according to the exchanges’ website in the F&O segment, stood at Rs 5,33,261.14 crore in 2017-18, up 40% from Rs 3,80,525.41 crore in 2016-17.


Impact on investors / traders


So, should you be worried in case you placed your order in the cash and/or the F&O segment? And, what do you stand to lose in such a situation?


Experts say investors in the cash segment should not worry much, as their trades on the NSE can be squared off against fresh orders on the Bombay Stock Exchange (BSE). Since most stocks are available on both the exchanges, the cash segment impact would have been limited.

Also Read: FPIs, MFs pump in over Rs 97,000 crore in stock markets in six months


“Since the problem is mostly in the F&O segment, the market regulator – Securities and Exchange Board of India (Sebi) – needs to step in. There will not be much problem in the cash segment, as the trades can be squared off in the Only those traders / investors that have a derivative position will face difficulty. I think Sebi will step in and the trading hours could be extended,” says G Chokkalingam, founder and managing director of & Advisory.


Chandan Taparia, derivative analyst at Motilal Oswal, on the other hand, says that the orders placed and executed before 9:55am will be accepted. 


“The orders that were placed and could not be executed before the problem started will be cancelled. Investors will have to place orders afresh once the exchange opens for business and the system stabilises,” he says.

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Puneet Wadhwa

Business Standard

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