The country’s leading bourse National Stock Exchange on Tuesday sought clarification from the member for placing orders for certain Nifty futures at a significantly higher price than the market price. In a statement, NSE said that it has received some inquiries about certain Nifty futures trades that were higher than the prevailing market price on July 5.
The exchange clarified that on Monday at the time of market opening, a trading member’s dealer placed a manual buy order for Nifty near month futures in the first few seconds upon opening of the market.
“Since the order was within the operating range, the order matched with existing sell orders in the order book and two trades got executed at a price with the trade execution range,” NSE said, adding the dealer subsequently cancelled the remaining order.
Meanwhile, there were some orders that were received from other members at prices similar to the above-mentioned order and orders which were within the trade execution range were executed.
“An explanation has been sought from the member as to why the order was placed at a price higher than the prevailing price in the market which could have misled the market,” the exchange said. It further added that the exchange systems functioned normally and all orders were executed as per the operating and trade execution ranges as prescribed.
Published: July 6, 2021, 21:19 IST
Download Money9 App for the latest updates on Personal Finance.