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Our Bureau

Mumbai , Jan. 17

THE Securities and Exchange Board of India (SEBI) has raised concerns over the frequent technical snags in stock exchanges, affecting trading and creating panic among investors.

Mr G.N. Bajpai, SEBI Chairman, on Saturday said that he had asked the stock exchanges to put in place measures to ensure that system failures do not affect stock trading. He was responding to media queries on a technical snag that affected the trading in the derivative segment on the National Stock Exchange on Friday.

A technical snag at the NSE halted trading for more than 25 minutes as the "process related to order and trade capture and execution was not responding''.

According to the NSE, to reactivate the process, it was necessary to restart the system. Mr Bajpai said the SEBI would be looking into the reasons for the technical failure experienced at the exchange.

Earlier speaking at a training programme for compliance officers organised jointly by the association of NSE members of India and Kotak Mahindra, Mr Bajpai said that the compliance officers must place a premium on intellectual integrity. Even though they are employed by broking houses, they must act like extended arms of the regulator in advising their employers about compliant trade and investing practises.

"This is a tough job but it is imperative that compliance officers do the balancing act between regulators and employers", he said.

Stock exchanges are now multi-product markets and standards of Indian regulations are world-class. The only aspect of regulation that is not up to world standards is in the enforcement area.

Speaking to media at the sidelines of the conference, Mr Bajpai said that the recommendations on uniform cut-off timings for mutual funds have been received from Association of Mutual Funds of India and the guidelines for the same will be finalised soon.

"This may involve amendments to the regulations," he clarified.

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