Mumbai: A week after the worst crash of the NSE, markets regulator Sebi on Friday said changes in the rules governing trade annulment in the event of massive erroneous trades will take some time as it does not want to rush with modifications in the existing risk management system.
"It (the rules on annulment of trades) will take some time because we want to be very cautious in whatever new structures we place. Our risk management mechanism, put in place in 2000, has by and large withstood the test of time.
"We don't want to tinker with it in a hurry," Sebi chairman Upendra Kumar Sinha told reporters on the sidelines of a capital markets summit (Capam) organised by Ficci here.
However, the chairman said Sebi has set up a group to look into the issue.
"I have already set up a group and that group is working on various aspects and that group will also be looking into this particular aspect. But we will not be in a hurry. We will do very wide range of consultations, we will do some stress testing, technical people will be involved and then we will do it," Sinha said.
He was responding to a query whether the capital markets watchdog is planning to change the rules regarding annulling of erroneously trades.
Last Friday, an erroneous trade order placed by a broker at Emkay Global led to a massive 15.5 percent or 900 points crash on the Nifty 50 index of the NSE, leading to a temporary halting of trade.
Subsequently, the NSE had suspended the brokerage from trading till this Wednesday when it had paid up the penalties to the nation's largest bourse.
When asked about whether the Sebi is probing the NSE crash, he said, "we are is looking into it very seriously right now. I am not using the word 'investigation'. But there is not much I can tell you about it".
PTI
