Religare Capital says tech error caused unusual trades

MUMBAI Sat Feb 2, 2013 12:22pm IST

A broker reacts while trading at a stock brokerage firm in Mumbai November 11, 2008. REUTERS/Arko Datta/Files

A broker reacts while trading at a stock brokerage firm in Mumbai November 11, 2008.

Credit: Reuters/Arko Datta/Files

Related Topics

Stocks

   

MUMBAI (Reuters) - A technology glitch at Religare Capital Markets caused "unintended transactions", the brokerage said on Saturday, a day after deeply discounted sale of large blocks of shares in Tata Motors (TAMO.NS) and UltraTech Cement (ULTC.NS) hit the markets.

National Stock Exchange Ltd said on Friday it was investigating the block sales in two stocks, the latest in a series of unusual price movements to rattle the market.

"Religare Capital Markets Limited uses third party software for execution of orders on stock exchanges. Due to some technical issue in the software, unintended transactions got executed," the brokerage said in a statement.

"There was no broker error and no loss to any clients," it said, adding the matter was being looked into by the software provider. It said there was no impact on client business and the brokerage would operate normally on Monday.

A total of 2.07 million shares in Tata Motors were sold in six blocks at an average price of 274.92 rupees in the afternoon on Friday, well below the roughly 292 rupee level at which the shares were trading at the time.

Tata shares fell as low as 268.25 rupees before ending the session down 5.49 percent at 281.64 rupees.

Shares in UltraTech, a cement maker, ended down 3.4 percent after an earlier block sale of 41,863 shares took place at an average 1,853.80 rupees, also well below where shares were trading at the time.

Both trades took place around the same time.

(Reporting by Sumeet Chatterjee; Editing by Jeremy Laurence)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Pharma

REUTERS SHOWCASE

Modi's U.S. Trip

Modi's U.S. Trip

PM Modi to get rock star reception in New York.  Full Article 

Northeast Floods

Northeast Floods

Landslides and floods kill 22 in northeast India.  Full Article 

Food Subsidy

Food Subsidy

India has no plans to increase food handouts - Food Minister Ram Vilas Paswan.  Full Article 

Importing Iron Ore

Importing Iron Ore

JSW Steel to import 10 mln T of iron ore due to local shortage.  Full Article 

Mars Mission

Mars Mission

India's Mars mission a step closer to success with engine test  Full Article 

Bumper Sales

Bumper Sales

Apple sells more than 10 mln new iPhones in first three days  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage