LSE cancels automatic trades in RIL depository receipts

The London Stock Exchange (LSE) has cancelled certain automatic trades that took place in the Reliance Industries (RIL) depository receipts counter this morning.

A total of 99 "uncrossing and automatic trades" were cancelled under rule 2120 of the London Stock Exchange (LSE), wherein the exchange can enforce cancellation of erroneous trades.

"Following the bonus issue in the above stock and the subsequent trading that has taken place this morning, the London Stock Exchange has cancelled all automatic trades that took place prior to 0836 hrs under rule 2120," LSE said in a statement today.

As per rule 2120, the exchange may, in absolute discretion, cancel trades across all its markets, either in response to a request from a member firm or its own violation. The exchange's decision regarding an exchange-enforced cancellation is final.

"Trading was halted in this stock (Reliance) at 0836 hrs and continuous trading will be restored shortly following an auction period of 15 minutes. All orders that are currently on the order book will be deleted prior to the auction call period," the statement added.

Bank of New York Mellon Corporation (BNYM), the overseas depository of RIL GDR facility, would distribute bonus GDRs in proportion to the outstanding GDR holding as cut off date to be announced by the BNYM, the LSE added.

RIL's shareholders at the 35th AGM had approved November 27, 2009 as the record date for determining the shareholders who will be entitled to bonus issue.

The RIL board had, last month, approved 1:1 issuance of bonus shares after a 12-year hiatus. The last time RIL announced a bonus issue was in October 1997.