In the wake of an over three-hour technical glitch at the US bourse Nasdaq, Sebi is taking a precautionary stock of trading and risk management systems at stock exchanges in India to reassure their robustness.
While the systems in place at leading Indian bourses are considered to be very robust and can withstand any possible technical glitches, it is advisable to conduct a precautionary check after an unprecedented three-hour trading halt at a large exchange like Nasdaq, a senior Sebi official said.
The capital markets regulator and the stock exchanges in India as such conduct regular tests of various risk management systems and trading platforms to ensure their stability against technical and other glitches, he added.
Trading activities were paralysed at Nasdaq yesterday after trading was halted for nearly three hours "due to issues with quote dissemination" on its platform.
The exchange said the halt was due to a "connectivity issue" that has been identified and addressed, while adding that it would further investigate the issue and would take necessary steps to enhance the platform.
Nasdaq has been traditionally favoured by technology companies for trading of their shares and some big names traded there include Facebook, Apple, Yahoo and Google.
Some of the Indian companies listed on Nasdaq include Sify and Rediff.
IT major Infosys also used to be listed on Nasdaq, but it later moved to another US bourse NYSE, where many other Indian companies are also listed and include ICICI Bank, HDFC Bank, Wipro, Tata Motors, Dr Reddy's and Sterlite Industries.
The US markets regulator SEC is also looking into the issues at Nasdaq, which had last year also came under fire in the wake of certain technical glitches during the IPO of social networking giant Facebook in May 2012. The exchange later paid a penalty of USD 10 million to SEC in that matter.
The instances of technical glitches in Indian stock market have been fewer in comparison to even some much more developed markets, although there have been some cases in the recent past when quotes of individual stocks and some indices were not getting updated properly for small durations.
Sebi Chairman U K Sinha recently said that the capital market infrastructures in India are better than those in many other countries, including some most developed economies.
"We have created market infrastructures which are world class and where trading today takes place in a much more transparent manner, which is much better than the way