Mumbai, Dec 12: Market watchdog Sebi on Wednesday said guidelines to prevent flash crashes, like the one on the NSE in October, and protect the interests of investors will be in place in a few days.
"I expect the final guidelines to safeguard the interests of investors due to flash crashes in a few days," Sebi chairman U.K. Sinha told reporters at a CII-organised capital markets summit, without elaborating further.
There was a massive 900-point flash crash in the Nifty on October 5, wiping out nearly Rs. 10 trillion of investor wealth. Following the flash crash, trading was halted for about 15 minutes. Sebi later ordered a probe, the result of which is awaited.
The NSE claimed there was no technical glitch in its system and blamed the crash on erroneous orders worth over Rs. 650 crore for multiple trades by broker Emkay Global in various stocks at low prices on behalf of an "institutional client".
The incident occurred on a day when expectations were high for an upward rally on bourses, following some big-ticket reform measures approved by the government the previous evening, including on FDI in sectors like insurance and pension.
