The National Stock Exchange (NSE) said that its systems functioned normally and asked the concerned trading member to explain with regard to the order placed at the higher price.
The clarification comes after certain Nifty futures trades surged on Monday within seconds of the opening bell without any similar rise in the underlying cash market.
“We would like to clarify that on July 5, 2021 at the time of market opening, a trading member’s dealer placed a manual buy order for Nifty Near Month Futures in the first few seconds upon opening of the market at a price which was significantly higher than prevailing price in the market,” NSE said in a statement.
Since the order was within the operating range, the order matched with existing sell orders in the order book and two trades got executed at a price within the trade execution range. The dealer subsequently cancelled the remaining order, it added.
In the meanwhile, there were some orders that were received from other members at prices similar to the mentioned order and orders which were within the trade execution range were executed.
According to the exchange, an explanation has been sought from the member as to why the order was placed at a price higher than prevailing price in the market which could have misled the market.
“We would like to reiterate that the exchange systems functioned normally and all orders were executed as per the operating and trade execution ranges as prescribed,” the NSE said.