Capital market regulator Securities and Exchange Board of India (SEBI) has advised National Stock exchange (NSE) to carry out a "detailed root cause analysis of the trading halt" witnessed at the stock exchange on Wednesday. The regulator also sought an explanation from NSE as to why trading was not migrated to the disaster recovery site.
Trading on India's largest equity bourse NSE was halted on Wednesday due to technical issues with telecom links that impacted its systems. Trading remained suspended from 11:40 am to 3:30 pm today at all market segments on the NSE. Bombay Stock Exchange (BSE), however, had normal trading in all segments today.
As a result, trading hours for NSE and BSE were extended till 5 pm. Post resumption of trade, the benchmark S&P BSE Sensex rose 1,030 points to end at 50,781, and Nifty zoomed 274.20 points to close at 14,982.
SEBI has asked NSE to submit its report at the earliest. The regulator said that it was informed by NSE that trading was halted at 11.40 am today due to "issues with the links with telecom service providers".
The agency said that it was in constant touch with NSE officials and continued to monitor the situation closely. "NSE was also advised to keep the market participants updated with the evolving developments," said SEBI.
In view of the exceptional situation arising out of the "trading halt", it was decided to extend the trading hours from 3.30 pm to 5 pm at NSE, BSE and Metropolitan Stock Exchange (MSEI).
The technical glitch on NSE occurred a day ahead of the monthly derivatives expiry. Nifty futures contracts expire on the last Thursday of the expiry month. If the last Thursday is a trading holiday, the contracts expire on the previous trading day.