Brokers body Association of National Exchanges Members of India (Anmi) has requested the Securities and Exchange Board of India to maintain status quo on the peak margin rules as there had been no reported instances of defaults under the current system.
Sebi has effectively capped the leverage possible in derivatives to four times the margin in phase 1 (from December 1). A penalty is levied if margin blocked is less than 25 per cent of the minimum 20 per cent of the trade value (VAR+ELM) for stocks or SPAN+Exposure for F&O. From March 1, penalty will be levied if margin blocked is less than 50 per cent of the minimum margin required.
(Repeats item that first ran on Wednesday)
MUMBAI, Feb 25 (Reuters) - India’s largest bourse shut down for nearly four hours on Wednesday due to what it said was a telecom network glitch, and its operators drew fire from traders for a lack of transparency over the problem, which they said caused “absolute havoc”.
The National Stock Exchange opened around 9:15 a.m. local time as usual, but traders said prices on its main indexes stopped updating about an hour later.
At 11:40 a.m., the NSE shut down completely for trading, leaving traders wondering what would happen to their open positions.
The Association of National Exchanges Members of India (ANMI) has raised several serious questions on the Wednesday s trading halt at the National Stock Exchange (NSE).
The Association of National Exchanges Members of India (Anmi) has written to market regulator Securities and Exchange Board of India (Sebi) saying there was no timely public announcement by NSE regarding Wednesday’s technical glitch, which caused huge monetary losses to members and investors, including intra-day traders. “All open positions remained at peak levels. The glitch happened one day before the expiry of monthly and weekly contracts. Hence, there is a greater need of engaging deeper investigation in the matter,” Anmi said in a note on Thursday. It said trading could have continued as there was an issue only with two spot indices. Reasons for not activating the recovery site after 45 minutes of the outage also remained unknown.
MUMBAI: India s largest brokerage Zerodha is facing a backlash from traders who saw their equity positions abruptly closed during an exchange glitch, amidst criticism that a lack of communication from the country s top bourse caused losses.
The National Stock Exchange (NSE) suddenly shut down for nearly four hours on Wednesday, blindsiding traders. As the NSE did not swiftly update whether, and when, it would reopen, brokers began closing intra-day equity positions on another exchange later, leading to sharp losses for some investors.
Hundreds of traders who bought stocks via Zerodha, dubbed the Robinhood platform of India, voiced concern on Twitter, with many posting pictures showing portfolio losses due to trades squared off by the broker.