Bse Annuls Trade At Bank Of Baroda Counter

The Bombay Stock Exchange (BSE) has annulled all transactions executed in the partly paid-up and fully paid-up equity shares of Bank of Baroda (BoB) yesterday.

Trading in the BoB stock would start on Monday on the BSE and from Wednesday on the NSE.

The annulment follows confusion among the BSE brokers over simultaneous listing and trading of partly paid-up and fully paid-up BoB equity shares.

Marketmen said the BSE had not mentioned partly paid-up shares in the scrip I-D, and that had given rise to confusion.

"The fully paid up shares priced at Rs 85 were only allotted to NRIs. However, trading took place on the fully paid-up counter as brokers mistook fully paid-up shares as partly paid-up ones", a broker said.

 

According to a leading broker, a buy quote of Rs 30 had been "mistakenly" put on the BOLT screen in the fully paid-up category, and other brokers (thinking the counter to be of partly paid-up shares), immediately turned into sellers.

A dealer at a leading institutional brokerage told Business Standard that the fully paid-up shares touched a low of Rs 28 and a high of Rs 87.

The partly paid-up shares witnessed a high of Rs 42.25 and a low of Rs 33.75.

The fully paid-up shares witnessed trades in approximately 101,000 shares while the partly paid-up shares of Bank of Baroda recorded a turnover of 172,000 shares. Transactions were more or less speculative in nature.

However, once the market came to know that these were the fully paid-up shares and not the partly paid-up ones, brokers went into hectic short-covering and the price ranged between Rs 80 and Rs 82", a broker said.

Trading in the counter was subsequently stopped at about 11 am.

Since the shortsellers had booked huge losses on "mistaken identity", the matter was considered in the light of representations received from the members of the exchange.