NSE asks BSE to explain surge in trading volumes

The National Stock Exchange (NSE) on Monday asked rival BSE to provide reasons for the spurt in trading volumes in its shares. BSE is exclusively listed on NSE.

A total of 663,361 BSE shares were traded on Friday, 13 times more than its previous four-day trading volumes.

"Significant increase in volume has been observed in BSE. The exchange, in order to ensure that investors have latest relevant information about the company and to inform the market place so that the interest of the investors is safeguarded, has written to the company," NSE wrote to BSE.

In its reply, the BSE said, "We would like to confirm that there is no such announcement or price sensitive information that is pending to be intimated or furnished by the company to the stock exchanges concerning the operations and performance of the company."

"We wish to reiterate and clarify that all information furnished by the company is in the public domain. We keep the stock exchanges duly informed of all the price sensitive information," it further added.

Interestingly, the query to BSE was sent on Monday, when NSE saw a three-hour trading halt due to a technical glitch. Many market players said BSE could benefit due to the fiasco at NSE as traders would spread their bets on both exchanges.

Shares of BSE on Monday gained 1.9 per cent to Rs 1,087. However, the trading volume was low at just 6,000 shares.

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