Tulip IT shares change hands @ 25p

Call it the biggest blunder by BSE or a small typing error - a clutch of investors today lost over Rs 12.69 crore within seconds as the newly listed Tulip IT services shares changed hands at 25 paise as against the market price of Rs 185.

As per BSE data, about 4.04 lakh shares of Tulip were sold at 25 paise at 2.24 pm. A few seconds later, about 5.95 lakh shares of the newly listed company were sold at Rs 100 a share.

For quite a few seconds, the share price moved between Rs 160 and Rs 185 before finally stabilising at its intrinsic value of Rs 185 at 2.25 pm.

The total number of Tulip shares traded on the bourse during the time was about 11.78 lakh at a weighted average price of Rs 77.25.

So, while some buyers had a windfall gain, some sellers lost a fortune.

Since the shares of the newly listed company are not subject to any price filters, the errors and omissions went unchecked. It cost the sellers a whopping Rs 12.69 crore within seconds.

Brokers say the transactions cannot be reversed automatically as the trading takes place through the electronic mode. If and only if both buyers and sellers agree to reverse the transaction can the error be undone.

Brokers also say the maximum compensation that can be offered
to aggrieved investors is Rs 5 crore.