Sebi asks BSE to explain stopping trades

Securities and Exchange Board of India (Sebi) has asked for an explanation from the Bombay Stock Exchange (BSE) for the shutdown in trading just after 2.30 pm as the rules allow the circuit filter (or the maximum allowed swing) of 15% before stopping trading for one hour.

In a dramatic day’s developments, the BSE stopped trading for a brief period after 2.30 pm -- the first time since May 2006 - after the Sensex dived over 2,000 points amid speculations that the exchange closed trading after the circuit ceiling (the maximum allowed swing) was triggered.
"Sebi has asked for explanation from BSE," a Sebi official said.

The exchange spokesman explained: "It was only a technical snag. It was not a circuit filter. It was just a coincidence (that the shutdown occurred when the Sensex fell over 10%)."

As per rules, the circuit gets triggered only if the benchmarks fall (or rise) 15% after 2.30 pm or one-hour before the close. Before 2.30 pm, the trigger is 10%.

There was no such stoppage by the National Stock Exchange though its officials also asked brokerage houses to pay up the margin money so that they could continue trading unobstructed.