Emkay Global stock tanks 10 per cent; hits lower circuit

NEW DELHI: Emkay Global Financial Servies Ltd slipped 10 per cent in trade and was locked in lower circuit on Friday, after the National Stock Exchange (NSE) said the broking firm was responsible for the erroneous trades.

At 01:40 pm, Emkay Global was locked in lower circuit at Rs 31.10.

The NSE said Emkay had placed 59 erroneous orders that resulted in multiple trades with an aggregate value of over Rs 6.5 billion on behalf of an institutional client.

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.

"These orders have been entered by a trading member Emkay Global Financial Services on behalf of an institutional client," NSE said.

"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.

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.

The NSE index Nifty crashed 800 points this morning, halting the trade on account of abnormal orders, resulting in multiple trades at low prices.

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.