SAT adjourns Emkay matter till July 23

An Emkay dealer had on October 5 made an error in entering the order for one of its clients

The Securities Appellate Tribunal (SAT) on Wednesday adjourned final hearing on the appeal filed by Emkay Global Financial Services till July 23.

Emkay had approached SAT after the National Stock Exchange (NSE) refused to accept its request for annulment of erroneous trades it carried out in October 2012.

An Emkay Global Financial Services dealer on October 5 made an error in entering the order for one of its clients.

The mistaken order, worth around Rs 650 crore, saw the benchmark Nifty index drop more than 15 per cent, falling 900 points. It also resulted in loss of over Rs 50 crore for the Mumbai-based brokerage.

NSE on Wednesday asked the tribunal for more time to submit its reply.

During the previous hearing in May, SAT had asked NSE and Emkay to provide details of previous cases of annulment as well as a record of Emkay’s trading volumes in the ninety days preceding the day the trade happened.

It had also asked NSE to halt its payout to the beneficiaries of Emkay’s freak trade until its next hearing in June.