SAT puts off hearing on Emkay-NSE case to Sep 30
Aug 29 2013 , Mumbai
Earlier, Emkay Global had challenged an NSE order to pay Rs 51 crore to counter-parties arising out of certain erroneous orders executed by a dealer of the company on October 5 which led to a 900 points crash of the index.
At today's hearing, NSE also produced the letter it had received from capital market regulator Securities and Exchange Board and sought more time to reply to Emkay's amended plea.
At the last hearing, Emkay had sought a copy of the Sebi show cause notice to NSE in this matter.
The said notice was sent by Sebi in June, in reply to which the exchange has already made its submissions before the regulator.
Sebi had sought to know why action should not be taken against NSE as well in the case, while the exchange has been maintaining that the flash crash took place entirely because of errors at the broker's end. In October 2012, certain erroneous orders entered by a dealer of
brokerage firm Emkay Global led to a flash-crash of over 900 points in the NSE's benchmark index Nifty, forcing the exchange to temporarily halt the trading.
These erroneous trades had led to a massive plunge of over 15 per cent in the NSE's benchmark index Nifty.
Emkay had to bear the losses, amounting to about Rs 51 crore, caused by this trade, but the brokerage firm later requested for annulment of the trade terming it as a one-off error. These losses are higher than market value of Emkay Global, which stands at Rs 45 crore.