Bse Imposes Rs 63 Lakh Margin On Naman Sec

The BSE has imposed a mark-to-market margin of Rs 63 lakh on member firm Naman Securities for its order of 2.5 lakh shares in the ITC scrip, which caused a flutter in the markets on Monday on account of it being a sharply high buy order.

Top BSE officials said the broking house has already paid Rs 45 lakh to the exchange and is expected to pay the rest by today.

On Monday, Naman Securities had placed a buy order of about 2.5 lakh shares of ITC at Rs 550 when the market price of the scrip was ruling at Rs 505.50. Following the order, the scrip price flared up suddenly and later came down as sharply. This gave rise to speculation in market circles as to whether the order was placed with the intention of rigging up the share price.

 

The ITC stock had witnessed sharp volatility on Monday at the markets. The scrip had closed at Rs 507.50 at the BSE against a previous close of Rs 543.50, while touching an intra-day high of Rs 553.50. However, officials from the broking house told the exchange that the buy order was placed by mistake wherein the BOLT operator had punched Rs 550 instead of Rs 505.50.

To support their claim, they said that they had started squaring off their positions as soon as the error was detected. Most of the positions had been cleared off on the first day while the remaining positions were cleared yesterday. This seems to be a case of a genuine punching error by the party concerned, a BSE official said.

Meanwhile, the BOLT screen showed a transaction of 10 crore shares of a B2 scrip -- CTR Manufacturing -- worth Rs 1,550 crore.

However, on enquiry with BSE officials, it was noticed that trading in the scrip had been suspended since June 16. Officials said that it was a technical error wherein unwanted data had entered the system.