Friday, 5 October 2012

Emkay Global stock tanks 10%

Emkay Global stock tanks 10%
Clean Media Correspondent
 Mumbai, Oct 05 (CMC) Emkay Global Financial Services scrip today tanked 10 per cent to hit the lower trading limit after the NSE blamed it for placing erroneous orders worth Rs 650 crore and triggering 800-point fall in the stock exchange's index Nifty.
The company scrip, which had opened on a positive note, went into a tailspin and fell 9.86 per cent on the BSE to touch the lower circuit limit of Rs 31.10.

At the NSE, the stock plunged 10 per cent to Rs 31.05.

The National Stock Exchange index Nifty crashed 800 points this morning, halting the trade, which the bourse blamed on erroneous orders worth Rs 650 crore by a broker Emkay Global for one of its clients.

In a statement after the incident, which halted the trade in cash markets for about 15 minutes, NSE said, "The market circuit filter got triggered due to entry of 59 erroneous orders which

resulted in multiple trades for an aggregate value of over Rs 650 crore.
"These orders have been entered by a trading member Emkay Global Financial Services on behalf of an institutional client.

"These non-algo market orders have been entered for an erroneous quantity which resulted in executing trades at multiple price points across the entire order book thereby causing the circuit filter to be triggered. These orders have been identified to a specific dealer terminal," it added.

The exchange further said, Emkay has closed out the positions arising out of erroneous trades smoothly and the member has been disabled from trading.

Nifty had fallen this morning by about 800 points or 16 per cent to a low of 4,997.6.

NSE said the market opened normally today and Nifty opened at 5,815. Nifty circuit filter got triggered at 9.50.58 hours upon which the cash market was closed automatically.

It also impacted the price movements of the BSE index Sensex, leading to its steep fall.
At 1304 hrs, the stock markets recovered some of the lost ground and Nifty was trading at 5,747.50, down 40.10 points. The Sensex was down 112.67 points at 18,945.48.

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