Market regulator SEBI today said it will soon announce measures to protect investors against stock crashes on the bourses.
Last month, the National Stock Exchange (NSE) witnessed a 'flash crash', when the Mumbai-based brokerage Emkay Global Financial Services sent the exchange index tumbling as much as 15.5 per cent in just a few seconds, creating a panic among traders. The crash was the result of erroneous trades worth $126 million, placed by Emkay Global.
“We are going to take some measures so that there is some pre-check in orders, in pricing and there are some other checks also introduced. We are looking at avoiding similar incidents,” the Securities and Exchange Board of India (SEBI) Chairman U. K. Sinha told presspersons on the sidelines of a securities market conference here.
“We are going to announce some measures based on experts views. Lapses on the part of any intermediaries will be looked at separately and actions will be taken,” Sinha said.
He assured the regulator is acting on both the fronts — systematic improvement and action for lapses.