9911796707
TMI BlogPolicy for annulment of trades undertaken on stock exchangesX X X X Extracts X X X X X X X X Extracts X X X X ..... ons for such annulment. However, to ensure finality of trades executed on trading platforms of the stock exchanges, to the extent possible, annulment of trades should be avoided by the stock exchanges. 2. In order to bring about uniformity and transparency in the process of trade annulment, a discussion paper was placed on SEBI s website to seek views and suggestions of the public. Taking into consideration inputs received during the discussion process, it has been decided that stock exchanges shall be guided by the following provisions with regard to the mechanism for annulment (or by whatever named called) of trade(s) resulting from material mistake or erroneous orders: 2.1. Examination of trade(s) for annulment may be taken up eith ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lment or price reset only in exceptional cases, after recording reasons in writing, in the interest of the investors, market integrity, and maintaining sanctity of price discovery mechanism. 2.8. In cases, wherein request for annulment of trade(s) has been submitted to more than one stock exchange by a stock broker, in respect of similar trades, stock exchanges shall jointly take a decision on such requests. 2.9. Stock exchange shall convey its reasoned decision on annulment of trade(s) or price reset to all counterparties to the trade(s) under consideration. Stock exchange shall also publish details of such decision on its website. 2.10. A mechanism to request a review of the decision taken by the stock exchange shall be provided. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... concerned stock exchange. 4. In addition, stock exchanges shall implement a suitable framework to penalise stock brokers who place erroneous orders. 5. With regard to annulment of trade(s) resulting from wilful misrepresentation or manipulation or fraud, trade(s) may be annulled as provided in the extant byelaws of the stock exchanges. 6. Stock exchanges may specify additional requirements as they may deem fit in order to ensure orderly trading and market integrity. 7. Stock exchanges are directed to: 7.1. take necessary steps to put in place systems for implementation of the circular, including necessary amendments to the relevant bye-laws, rules and regulations, within one month from the date of this circular; 7.2. brin ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
