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Summary Indian firm admits an error by a dealer sparked flash crash on India's stock exchange last week.
The Nifty index in Mumbai dived 920 points on Friday with shares in big financial stocks especially hard hit after incorrect orders worth $125 million were placed by Emkay Global Financial Services.While executing an order to transact a Nifty cash basket... a dealer committed a bona fide error, Emkay said in a statement.Immediately on realising the error, we promptly got in touch with the NSE (National Stock Exchange) and kept in touch with them to co-ordinate all future course of action until the entire erroneous outstanding position was closed out.Emkay, which faces unknown liabilities over the mistake, said it hoped this obvious and apparent error would justify the annulment of these trades.Fridays fall, which forced trading to be suspended for 15 minutes, was compared to the flash crash in US stocks in May 2010 in which the Dow Jones plunged 1,010 points -- about nine percent -- before recovering within minutes.Emkay fell 9.98 percent to 27.95 rupees during Monday morning trade after similar sharp falls on Friday.Finance Minister P. Chidambaram met senior officials of the market regulator SEBI on Saturday and afterwards told reporters he was assured there was no systematic risk.
