NSE suspended 195 F&O terminals in May

The National Stock Exchange of India (NSE) had disabled 195 broking terminals in the futures and options (F&O) segment and 15 cash market terminals in May 2006.

The NSE had 713 active members in the F&O segment and 852 active members in the cash segment during the month.

Anagram Securities, ASK Raymond James, Brics Securities, Escorts Securities, Keynote Capitals, Motilal Oswal Securities, Quantum Securities Pvt, and Dolat Capital Market were some of the firms whose F&O terminals were deactivated.

According to a market source, the disablement followed the market volatility witnessed since May 10, which saw brokers facing margin pressures.

The Nifty fell more than 20 per cent from its high of 3774.15 on May 11 to 3071.05 as on May 31.

The terminals, which were disabled from one to six trading sessions, were re-activated after the brokers cleared their payments.

Senior officials at the NSE refused to comment on the development.

"The fact that some big participants were caught in the margin crisis sounds scary and exposes the risk management system at most brokerage houses," said a market player.