Markets

Technical glitch at NSE sends Axis Gold ETF prices soaring

Our Bureau Mumbai | Updated on July 24, 2020 Published on July 24, 2020

Bourse cancels trades; brokers flag ‘recurring problem’

The National Stock Exchange (NSE) was yet again hit by a technical glitch on Friday that spiked the price of Axis Gold ETF by a whooping 6,553 per cent to ₹3,482. Similarly, the price of Axis Nifty ETF soared 741 per cent to ₹1,151.

In comparison, on the BSE where Axis Gold ETF is listed it rose only 1.22 per cent to close at ₹52.24.

“Trades in Axis Gold and Axis Nifty till 9.50 am will be cancelled by the exchange. Trading in these securities shall resume with the revised price band, post this activity and the same will be notified in advance,” said a spokesperson for NSE.

Trading was similarly disrupted for many brokers this February and September last year. In November 2019, brokers wrote to the NSE seeking compensation for the losses they suffered due to the trading glitch.

‘No uniform policy’

“Technology or trading related glitch at the NSE is a recurring problem. This is one of the rare instances where the NSE has cancelled all trades. But there is no uniform policy on loss to clients due to such glitches. Also, detailed reasons for the glitches are never given. Nobody knows if every glitch is ever investigated by SEBI. Much work needs to be done in this area,” said Arun Kejriwal, founder, Kejriwal Research and Advisory.

In 2017, NSE’s then Chairman Ashok Chawla had, in an internal note to the top executives of the exchange highlighting the problem of recurring trading and technology related glitches, termed them as “potential black swan events.”

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Published on July 24, 2020
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