 "Sebi pulls up BSE for lapses in NMDC disinvestment")
The exchange had confirmed orders for 45.5 million NMDC shares after the stipulated time. Bids by Citibank NA were confirmed between 6:22 pm and 6:30 pm, not within half an hour of the post-close session, as stipulated under Sebi norms.
In his order, Prashant Saran, Sebi’s whole-time member, said, “BSE is hereby directed to engage one or more independent consultants to review the entire sequence of events in the matter, the process followed, the checks in place and the systems employed while accepting the OFS bids by BSE. The consultant should bring out the shortcomings, if any, and suggest remedial measures within a period of three months.”
“Sebi is advised to conduct a detailed probe into the confirmation of bids by Citibank NA,” the order added.
The regulator said BSE hadn’t informed it of the error, adding it was only after BSE raised the final figure of the bid by 45.5 million shares that an explanation was sought and provided.
An email sent to a BSE spokesperson did not receive an immediate reply.
In March 2012, disinvestment worth about Rs 13,000 crore in Oil and Natural Gas Corporation was hit by technical glitches, which bourses claimed had taken place at the custodian-level. They said some orders might have been erroneously rejected on account of the glitches.
The regulator noted that the BSE did not intimate Sebi about the error. It was only after BSE revised the final figures of the bid upward by 4.55 crore shares, that an explanation was sought and provided.
An email sent to a BSE spokesperson did not immediately receive a reply.