Religare Capital Markets says tech glitch caused freak trades

Stock market

Religare Capital Markets today said software technical glitch caused some "unintended transactions" leading to erroneous sell orders yesterday in Tata Motors and UltraTech Cement shares, due to which they had briefly fallen by 10 per cent on NSE.

The brokerage firm further said that there was neither any broker error nor any loss caused to the clients, while the matter is being investigated by its third-party software supplier.

"Due to some technical issue in the software, unintended transactions got executed. There was no broker error and no loss to any clients," Religare Capital Markets Ltd said in a statement.

Tata Motors shares fell to Rs 268.25 or over 10 per cent from its previous close of Rs 298 yesterday. It finally closed at Rs 293, down 1.68 per cent. The shares fell after six separate block deals comprising a total 20.7 lakh shares took place at an average price of Rs 274.92, according to NSE data.

UltraTech shares fell to Rs 1,712.35, down over 10 per cent, after one block deal comprising 41,863 shares took place at an average price of Rs 1,853.80. It closed at Rs 1,870, down 1.71 per cent.

Religare Capital Markets uses third party software for execution of orders on stock exchanges, the brokerage said.

It said there was no impact on client business and Religare Capital Markets will operate as normal on Monday.

The matter is being investigated by the software supplier and the company has discussed the matter with NSE officials.

NSE official had yesterday said the problem happened apparently due to some big orders coming from a broker at a very lower price, but that the fall in prices was within the exchange limits.

On October 5 last year, erroneous trades by a broker at Emkay Global led to 900 points fall in the Nifty.

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