Technical glitch in BSE prompts dealers, clients to shift trading to NSE

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Investors suffered connectivity issues at BSE, making it difficult for them to place orders during the start of the day's trade on Thursday. Some brokerages, including ICICI Direct, Sharekhan, and Dhan, advised their clients to place orders on the National Stock Exchange (NSE) until the issue was resolved.

As per exchange officials, the technical issue was due to the internet service provider (ISP), and the issue was resolved by 9:30 am.

"Clients, please note: You may face difficulty in placing trades on the BSE exchange as there is a connectivity issue at BSE. You can place your trades at NSE, which is working fine. We are working with BSE team on resolving it and will update once it is up," tweeted leading brokerage ICICI Direct at 9:07 am.

In a bid to smoothen out volatility, domestic bourses conduct a pre-open session between 9:00 am and 9:15 am. Meanwhile, the continuous trading session is held between 9:15 am and 3:30 pm.

Earlier in January this year, the Securities and Exchange Board of India (Sebi) revised the reporting guidelines for the stock exchanges and other market infrastructure institutions (MIIs) during trading outages. Under the new standard operating procedure, MIIs need to inform of such outages within 15 minutes of the occurrence. The exchange is also required to update at time intervals of 45 minutes.

Incidentally, these rules were formed following a trading glitch at NSE in February 2021, which had halted trading at the country's largest bourse for nearly four hours. Following the incident, Sebi issued a show cause notice to NSE alleging failure on the part of NSE's crisis management team (CMT).

Earlier this year, NSE and its arm NSE Clearing had agreed to pay a total of Rs 76 crore to settle this case.

NSE, in its response to the regulator, had submitted that the technical glitch occurred on account of reasons beyond its control and the exchange could not have reasonably anticipated the problem.