Freak trading Research Paper

FREAK TREADING: CHALLENGES AND PREVENTIVE MEASURES

FREAK TREADING: CHALLENGES

AND PREVENTIVE MEASURES

Dr Kunal Pandya Dr Snehal Mistry

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ABSTRACT:

The Capital Market segment, National stock exchange and Bombay stock exchange are

two of the world’s biggest exchanges which are controlled and restricted by “Securities and

Exchange Board of India.” Even though having various rules, regulations & controlling

measures, Cash segment of the national stock exchange has shown sudden spike in prices-

Freak Trading, have wiped off 16% of nifty in two minutes with the reduction of 10 lakh crore

rupees of market capitalization of investors, reducing the confidence of investors and agents in

the market and making many investors exit from the investment market. By the words of Richard

Bentley, vice president of Progress Software: “Lack of test undoubtedly was the root cause of

many recent mishaps.” Market has shown 900 points drop which failed to forcing the exchange

to temporarily shut down operations. To prevent future mishap’s SEBI is undertaking various

preventive measures where they are paying more attention to “What if” situations rather than

taking system as granted. “Abnormal orders resulting in multiple trade of low prices are

restricted through equal importance to institutional investor with certain daily limit of the

execution of the order and gathering quarterly compliance reports by which SEBI is hoping to

restrict the malpractices of the exchanges and regaining the investors’ confidence to boost the

current capital market scenario and to generate vibrant practices of the current capital market.

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Contents

ABSTRACT: 2

INTRODUCTION: 4

LITRATURE REVIEW: 5

INTRODUCTION OF THE FREAK TRADE: 7

BACK GROUND INFORMATION OF FREAK TRADING IN INDIA: 9

CONCERN OF SECURITY AND EXCHANGE BOARD FOR FREAK TRADE: 17

PREVENTIVE MEASURES BY SEBI: 19

BIBLIOGRAPHY: 24

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INTRODUCTION:

Indian stock market got converted into computerized system since 1991 to prevent the

various scams like Harshad Mehta scam & Ketan Parekh scam. Even though the computerized

system of trading and transaction was innovated with the motive to smoothen the transactions

and restrict the malpractices of the share markets, the system which was created to restrict itself

becomes the system of malpractices. After the introduction of new system, the system came with

such loopholes which created disaster to the market of India. Among those disastrous practises,

one is known as freak trading.

Since 1991, freak trading was a common issue prevailing into current market but year

2010 was the year where for first time freak trading came out in picture. Rounds of trading

turned out to be freak trading, which never attracted attention of SEBI, brokers, investors and

normal people. But the freak trade by Emkay Global Securities Limited gathered the eyes of

everyone on the same issue keenly. Emkay Global has created the disaster in market where just

by one company and in 2 minute, market capital was reduced by 3 lakh crore rupees. On 5 th of

October 2012 the market has shown reduction of around 900 points in cash segment of S & P

NIFTY which is the benchmark of National Stock Exchange of India.

Emkay Global issue was a precautionary signal for the market, SEBI and brokers of

various cities of the country. Trading which can reduce various people’s market capitalization

just because of the mistake by one simple trader of trade union had forced SEBI to measure the

restrictive policies to prevent this kind of mishaps. SEBI (Security & Exchange Board of India)

came out with various steps which includes restriction of trade has undergone with various

changes to make market trade movements very smooth.

Though, SEBI has undertaken various preventive measures to restrict various scams and

freak trading malpractices of the security market and capital market, the measures and system

itself failed very bad that the system needed reconsideration and alteration to restrict this kind of

malpractices.

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Though freak trading is a minor issue in capital market, and that too with the preventive

measures been undertaken, the major concern for SEBI become to rectify the system itself to

restrict further issues like freak trading.

LITRATURE REVIEW:

1. According to “Palak Shah” titled: Freak trade at NSE: Rs 3 lakh cr erased

in 2 minutes:-

On 5th October 2012 at 9:49am, in the NSE there was a decline at 900 point with

reduction of around 3 Lakh crore rupees of market capitalization. Emkay Global Financial

Services issued trade of 59 stocks in shares like State Bank of India, ITC where mistakenly 65

crore cash sell was issued at 650 cr which ultimately reduces NIFTY by 16% requiring to halt &

trigger trade to halt by 1 hour as per rule instead, the trigger was for 15 minute only. According

to SEBI, the mistake was made by Emkay Global which traded in cash market and part payment

has been paid. But due to this mistake, market capitalization of Emkay Global reduces from 70

crore to almost loss of 50%.

2. Santosh Nair: Freak trade to cost Emkay Rs 51 crore; in talks with

brokers:-

According to Santosh Nair on 5th October, one of the broker has mistakenly sold 65 crore

Rs shares value of 650 cr rupees where they come to oversold position triggering price to go way

below (almost 15 to 20%) in some selective shares which ultimately had given opportunity for

buyers to buy shares at very low price. To rectify these mistakes, Emkay also needed to buy 650

crore rupees of shares from market. It has suffered loss of around 51 cr rupees which has passed

to many small brokers of the country. The ANMI (Association of National Exchange of India)

and BSE brokers forum is requesting to brokers to participate in reducing loss of Emkay Global.

SEBI has taken this manipulation seriously and started making various regulations against the

stock brokers.

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3. Reuters: Freak Trade again? NSE probes decline in Tata Motors,

Ultratech:-

On 2nd Feb 2013, NSE has seen freak trade again on Tata Motors and Ultratech cement

where one broker company has placed sell order way below than the trading price prevailing in

the current market situation which has shown almost 10% decline in shares prices. According to

SEBI, although the trading was within the limit of stock exchange & SEBI rules. Although SEBI

confirms it is a freak trade where one broker has misplaced the order with lower price. It also

seems that in large cap market bid - ask spread was abandoned, though this kind of malpractices

are performing in the market.

4. Reuters Market Eye – Shares in Bank of India make a sharp fall before

quickly recovering in what some traders describe as a “freak trade”:-

On 5TH Feb 2013, the Bank of India shares shown a reduction of rupees 22.65 with the

denomination of 336.65 rupees which is a down of 7.8%. Around at 12:20pm IST, this kind of

reduction happened at the National Stock Exchange which ultimately described as a freak trading

where most of major blue chip shares like Tata Motors, Ultratech cement have also shown as

much as 10% reduction, which was actually the cause of technology glitch at Religare Capitals.

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INTRODUCTION OF THE FREAK TRADE:

Since inception, national stock exchange and Bombay stock exchange has seen immune

growth with the number of companies and market share also. Most people and traders are

entering in the NSE and BSE which consist of around 99% of the total investment and activities

in countries stock exchanges. Among all NSE and BSE are known as most sophisticated and

most structured stock markets in world. In the year 1992 when government of India amended the

Act known as Security and Exchange act, 1992 that moment the stock market converted its

physical based trading to Screen based treading and this immense change increased the

investment base in the market only.

Even though SEBI act 1992 was introduced to smoothen the process of the market

movement with the security and safety of the investor, still in certain ways there become various

issues and scams in the capital market in larger cases. Whether we takes example of Harshad

Mehta or Ketan Parekh, in all cases man made mistakes or manmade blunders created scams and

created reduction of investors capital and investors trust in to capital market. Among all of this

various scams happened in the various stock markets, the most recent scams which have created

major issue for the stock market and Security and Exchange Board of India is the Freak Trading.

Freak Treading by its name shows that this is the treading which creates a freak in the

market. By large the definition of freak trade is: “freak treading is a treading in either Buy or sell

in the cash market segment of the stocks where the price or the quantity of the stock was quoted

wrongly by manmade mistake which creates huge reductions in the prices of the that particular

share or the market benchmark.” Trading which includes the wrong price of at the time of

purchase or sell in particular intraday transection or the treading in which either buy or sell

quantity were of so large amount which ultimate increases or decreases the price of the product

so large creating the Freak in the market for the upward or downward movement of the price and

this is why this treading is known as the freak treading.

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The hype of freak trade came in to existence on 5 th October 2012 where just because of

the manmade mistake of one broker market has shown 16% reduction in the market. The

benchmark share NIFTY has shown tremendous reduction of 3 lakh crore of rupees in the market

capitalization of the share. The market was halted for 15 minute for trading purpose. One broker

has mistakenly orders of 650 cr rupees instead of 65 cr rupees which have created an impact of

decline in major blue-chip stocks of Indian market. It becomes necessary for us to understand the

History and issues related to impacts of freak trade.

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BACK GROUND INFORMATION OF FREAK TRADING IN

INDIA:

June 1 2010:

June was the date where for the first time Indian market seen the freak treading. During

the trading session of the 1st June, shares of reliance falls almost 20% from the previous day’s

closing of the Sensex. Previous day closing for the stock reliance industries was 1045 and as per

the below data the we can see that the day closing of the stock shows about 840.55 which is

almost about 204.45 point of reduction which is almost 20% of the market.

Even in the below picture of the Sensex we can see that the Sensex for the first June

started with 16943 and the day low was 16318 which had shown the reduction of around 630

points. The most surprising thing was that even though the market was running smoothly on 1st

June 2010 through just a manmade mistake by some of the broking company in the blue chip

company reliance industry had shown the reduction of the shares price of 20% while it reduces

the Sensex by almost 5% and reduced the market at very large position with reduction of market

capitalization of various investors. This incidence kept the attention of SEBI at large as it has

created a freak in the market and thus this kind of treading got name of Freak Treading.

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The reported incidence had seen certain policy formation and certain preventive measures

by the SEBI at large and had made foundation methods to track down the freak trading in the

stock markets of the India. By large these preventive measures were the transformation of

Infrastructure only which at large created some room for the development of the manmade

blunders which can create huge problems for the investors of the Market.

20 April 2012:

There were huge and abnormal activities been performed on 20 th April 2012, Where the

nifty future fall sharply from 5338 to 5000 which was a drop of around 7% with in very few

seconds but later on it recovered and settled to around 5300. Surprising things were that till this

duration around 35000 lots worth of 17.5 lakh shares were been traded in the future market.

The situation in nifty future occurs just because of the manmade mistake where the

person can mistakenly punched or enter a sell order with a wrong quantity price or it is also

possible that it may be due to the algorithmic treading where it is a program treading which in

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case there is a fall below a particular price level, the algo will initiate the sales no matter of what

the price is.

The basic idea of the situation can be stimulated that on the same day there was a deep

price movement of Infosys shares which has shown the reduction of around 20%. By the

investigation of the SEBI it came out with the theory that any manmade mistake to the Infosys

share could have plugged either lower prices or more quantities. This would have reduced the

market price of the INFY future which might have reduced the Nifty future by this large amount

also. This kind of treading was known as Flash Crash in the future market.

5th October 2012:

5th October is the worst day in the history of the National stock exchange and also in the

history of the freak treading where the marker totally lost 3 lakh crore rupees of market

capitalization and that also to the reason of one freak trade.

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On the same day, one broker named Emkay Global financial services, trading for a sell

order on an institutional investor for Rs. 65 crore of rupees mistakenly quoted the order of 650 cr

rupees creating a hype of the down ward trend of the prices in various blue chip companies of the

National Stock Exchange. Emkay global has mistakenly traded in 59 trades at same time for

placing 650 cr rupees of shares sold at very nominal price in the market. The only issue which

arises in the market was the supply of the shares becomes so much than the demand of the shares

which ultimately forced the prices to go much below than the last traded prices in the market.

The same day of this freak trade the national stock exchange benchmark “ S&P NIFTY”

had started its treading with the open price of 5815 which just because of the mistaken trade of

Emkay Global reduced to 4888 point which was the reduction of around 16% than the previous

trade. This reduction of around 16% in the market has washed away the market capitalization by

300000 cr of rupees. Which is almost a huge amount for any of the markets?

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The same day Emkay Global has issued order in various blue chip companies of India

who all are having good presence in the stock markets of India and which actually covers the

20% portion of the overall trade and market capitalization of the Indian capital market. Let us

look at the Impact of this freak trade on these shares.

I. Reliance Industries: reliance industries are the most traded security in the

marker with the majority of market capitalization in National Stock Exchange of

India. Due to the Freak trade by Emkay Global on 5 th October, the prices of the

reliance industries which were around 860 rupees reduced to around 683 rupees

which is almost the drop of 180 point representing the drop of almost 20% just

because of the freak treading leaving investors to lose millions of rupees.

II. Bharati Airtel: Bharati Airtel is the giant company in Indian market who is

having its presence with the telecom and mobile communication system. Bharati

Airtel is one of the leading companies in India who always have shown stable and

sustainable growth in terms of security market. But on the freak treading day,

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bharati Airtel which was started its trade from 271 rupees reduced to 215 rupees

showing the difference of around 20% in the share prices of the company.

III. Hindustan Unilever Limited: The HUL is the most prominent company in the

National stock exchange of India. HUL is a subsidiary company of Unilever

limited which is a multinational company. HUL itself is the preference for

majority of the stock brokers for the speculative and earning prospective. The

same situation has seen in the freak trade of the Nifty where mistakenly the

market price of the HUL which was 559 reduced to 444 showing almost 110 point

difference and 20% reduction in the prices of the shares.

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IV. ICICI BANK: just like other companies in the market, ICICI bank has shown the

crash in the prices two which is as below.

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Emkay Global has realized this manmade mistake so early in the duration of few minutes

only but still the market has reacted so suddenly that majority of the trades gets executed and

converted to sold shares. The outcome of the freak trade was many of the dealers who have

quoted very low price for the particular shares got the order executed and the amount paid for

these shares were so low that these investors have made around 20% of the profits just by the

mistakes of some other Broking House.

Emkay global itself is a registered company in the stock market which does have a net

worth of around 148 cr rupees and a market price at that moment was around 32 rupees of a

share. Just because of this freak trading in the market Emkay Global needed to pay the cash

reserves of the particular Trades which were already converted in the small duration of this

system. Apart from that the Emkay global also needed to pay penalty to the Security and

Exchange board of India for this mishap. The total loss to this company for this manmade

mistake was around 60 cr rupees which is almost 50% of its net worth.

The impact of this issue was so huge that the benchmark share of National stock

Exchange of India S&P NIFTY was been halt for treading for 15 minutes. This trigger was

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generated by SEBI to analyses the situation and to recover the data of the shares. Just 2 minutes

of manmade mistake has washed lacks of crore rupees from the market which ultimately shows

the failure of the market.

5Th February 2013:

On 5th February 2013, nifty has shown the sudden drop of around 10% prices in the

shares of Bank of India, Tata Motors and Ultratech Cement. The Security and Exchange board of

India has started the investigation and came out with the solution that the broking firm Religare

has mistakenly issued the order of shares which has lowered the prices of the shares. The

officials of the religare have issued a press note stating that the company is utilizing the third

party software to trade in the stock markets. The system has shown some errors which have

created false orders. The fault was the only system where the system has mistakenly placed the

freak order which has rectified so soon. The reduction in the price was within the limits of the

Nifty.

CONCERN OF SECURITY AND EXCHANGE BOARD FOR FREAK

TRADE:

Majority of the trades in the stock exchanges are within the regulatory frameworks of

Security and Exchange board of India’s rules and regulation. In the cases of scams and Freak

trades, SEBI plays role of investigator and restrictor for further issues in the market. In the case

of Freak treading in India, SEBI has started the investigation in the market system, where they

came out with the investigation that the problem of the freak trading was just a manmade mistake

nothing else. The issue was conversion of the manmade mistake in providing the market orders

which ultimately created the issues of Freak Trading.

Regulatory frame work stated by NSE senior VP Ravi Varanasi quoted that the market

has seen the freak trading but the system was not the issue for freak trade and that’s why the

market has not halted its transection for more time. The markets at the times of Freak trades were

just halt for less than 15 minute period only. He quoted that: “There was no technical glitch. It

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was a normal market order.” He clarified a large order was placed erroneously and trading was

not halted for a longer duration, as required under the norms, because the entire market could not

be made to suffer”. The VP of NSE stated in his quote about the technical glitch in which he has

culprit the company for the fault and just because of a manmade mistake the market does not get

triggered and cultivated its regular transections in the remaining duration of the functions.

All the senior officers of SEBI are just targeting the company for all the faults happened

for the Freak trade but none of the officials have ever put their attention on the overall

functionality of the market infrastructure which is at ease a lot. The major concern for any of the

stock exchange is the possible infrastructure failure which can create a huge danger for any of

the investor in the market. Thus any of the regulatory body never conveys the mistakes of the

Infrastructure of the stock market and regulatory functions of the particular body.

In the freak trade case in NIFTY, the major concern which arises is the failure of the

mechanism of the stock exchange regulatory system. In Indian stock exchange the stock markets

fallows the trigger mechanism where if the share or benchmark share prices increases or

decreases to certain amount in terms of percentage than the market triggers and stops the

treading section for certain period of time.

Rules say trading should be halted for an hour if there is a fall of 10 per cent in the Nifty

or Sensex before 1.00 pm and for 30 minutes if the limit is breached between 1 pm and 2:30 pm.

These norms are similar if indices rise/fall by 15 per cent and 20 per cent. These rules are

preventive measures for any freak in the markets for the investors. If market moves above 10%

trigger than the market steps its movement for one hour which has to be happened at the times of

freak trade where the prices of the particular share as well as benchmark share has reduced by

16% to 20%. The mechanism should have stopped the treading in the market for any further

reduction in the market prices but in none of the cases of freak trading this kind of trigger

mechanism worked.

The only reason to this system mistake can be justified that whenever the freak trading

happen in the market, all the trades were manmade mistakes which have been rectified with in

the few minutes of the transaction. It means that even I the mistakes are happening which

ultimately been rectified by the cancelation of the same order with in few minutes which

ultimately bring the market prices back to the same movement. The market security forces states

any changes in the market price above trigger prices only if the trade was stated for few minutes,

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but in this cases the movement was stopped and canceled which makes the market mechanism

faulty for the systems of freak trading.

Looking at the mistakes of man and a system, showing the consequences of SEBI for

preventive measure, it becomes necessary for us to look at the various preventive measures

undertaken by SEBI for the prevention of Freak Trade.

PREVENTIVE MEASURES BY SEBI:

Security and Exchange Board of India, who has introduced mechanism in the year 2000,

has not changed single methodology since it. The system setup in 2000 was so rigid and

unstructured which has cultivated various ways of scams and scandals. SEBI chairman, after the

freak trade on October 2012, stated in one report that they are not at all in hurry to investigate

about the case because they want to be very cautious in whatever new structure they have placed.

SEBI wanted to do wide range of consultations and stress testing of various systems.

By large, SEBI has taken the issue very seriously and is doing various measures to

prevent freak trading, some of them are as below:-

Suspension of Emkay Global’s trading license: -

On 5th October 2012 one of the broker has mistakenly traded a block deal of 59 trades

costing 65 crore of sale. The trade was mistakenly placed to 650 crore rupees which ultimately

was rectified by the brokerage firm, still it created freak in the National Stock Exchange for 2

minutes which ultimately suspended the trade for 15 minutes.

SEBI has undertaken this mistake of Emkay Global very seriously. The company was

started by too chartered accountants with the view of trading and brokerage of stock exchanges.

This company is a listed company in the stock exchange with a market capitalization of Rs 75

crore and net worth around 140 crore rupees. The company was having high liquidity in terms of

cash to trade in the market aspect.

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Even though the company was having enough liquidity position, SEBI has suspended the

trading license of Emkay Global. The company had paid all the penalties to the SEBI, still the

license was suspended.

SEBI chairman Upendra Kumar Sinha stated that, cancelling the license of Emkay Global

is a decision of SEBI to provide strict impression in the market for the companies who are

creating hype and freak in the market. Suspension of the trading was a historical example by the

SEBI to all the broking companies for a preventive measure.

Emkay Global was a huge company who participated for major terms of trading in NSE

cash segment. Even though after paying penalties, the company’s license of trading was

suspended. It really shows that how serious SEBI is to prevent this kind of freak trades in the

country. The broad steps taken by SEBI provided red signal for all the broking companies stating

to comply with rules and regulations of SEBI for smooth trading of the markets.

Imposing cash margins on institutional trades: -

Stock market transaction does convey two methods. One method is cash method and

second method is margin method. In terms of cash method, generally the buyer needs to pay the

full amount. In margin method buyers put margin only and rest of the amount is paid in later

stages.

The basic preventive step SEBI took is impose of the cash margins on the institutional

trades. Generally whenever the institutions are participating in cash segment market of the

various stock exchanges, that time they make either short buy or short sell, where they just need

to pay small portion of the amount and rest amount will be paid at later time.

When institutional trades are doing trade, if that moment they need to create some margin

payment by cash, that moment will restrict them to convert major trades because of cash

restriction or liquidity restrictions. Major of the trader’s trade for clients where client insist to

make margin calls. Whenever this kind of margin calls occurs in market, each and every trader

should deposit some cash margins for the trade.

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In recent situations, where we are transferring to T+2 trading cycle, imposing cash

margins for institutional investors will help the SEBI and market to work safely without any

scams. The cash margin imposed to the institutional investors will restrict the freak trade by

large. After imposing these cash margins, all the institutional traders need to deposit certain

amount of trade in terms of cash when they are doing any trade transaction in market. Whenever

the trade is within the cash margin limit, it will ultimately been executed but if the cash margin is

below the required margin that moment the transaction will not be executed which will restrict

the order.

The preventive measure will help in large to restrict the freak trades in NSE & BSE.

Whenever any transaction occurs in market which we called freak trade will first need cash

margins to execute the order. Once the company doesn’t provide cash margin, ultimately the

trade gets suspended and the market panic will not occur just by any manmade mistakes. Thus it

provides very feasible solutions for the freak trade, which SEBI has planned to perform.

Setting up risk and surveillance infrastructure: -

Security and exchange board of India is always looking to simplify and clarify the trading

mechanism of the markets. In the process of simplification of the trading terminals and traders,

SEBI introduced various infrastructures to traders. One of the major transformations is the

introduction of computerized trading system in Indian markets.

Apart from that, Security and Exchange Board of India has started various yearly

compliance report submitted by the brokers and traders of the NSE & BSE. These compliance

reports must need to provide the liquidity positions, trader situations and compliance with the

customers are necessary. Apart from that traders also need to provide various basic information

about trading which occurred and conducted by traders during the specific period of time.

Initially, the SEBI wanted to conduct this risk surveillance every year but later on due to

misconception scams and manmade blunders, SEBI started conducting these reports quarterly

where each trader are in the need to provide risk report every quarter and depending on that basis

their trading license will be renewed.

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In the transformation of infrastructure, SEBI is trying to improve the trading cycles where

they want to convert the cycle from T+2 T days. They are also planning to reduce the 15 second

delay which actually prevails in the current security market which shows the changes of price.

These changes are causing many orders to over value and under value then the actual order.

Thus, a step of SEBI for the surveillance of risk and infrastructure is a very broad step.

Imposing small momentum circuit for small duration: -

Since the computerization of the securities exchanges of our country, SEBI has imposed

certain limitations and restrictions to prevent massive scams and obligations in stock exchanges

of our country. SEBI has measured various limits till what the movement in one direction can

sustain. The limit is imposed to restrict the upward or downward movement of the prices of

shares and scripts up to certain limits only. If the limit was not imposed then ultimately, the

stock transaction in particular shares can be seen as manipulated shares and ultimately creates

scams. To restrict this either upward or downward unlimited manipulation, circuit system has

been imposed in the stock market of our country.

SEBI has introduced various stock market circuits for the different levels of prices. SEBI

has divided the restrictions of the trading for certain time (circuit) for different percentages. If

any stock price or market movement crosses 10% than market trading stops for half hour. Later

if it increase more 5% then trading stops for one hour and if it again increases 5% then market

stops trading for half day only. In case of freak trading, where market reduces by 900 which

comprises of 16% reduction in market price of S & P NIFTY needed to be closed down

automatically for one hour but the system didn’t trigger and market had not stopped it’s trading.

Just to rectify this kind of system mistake, SEBI want to implement one strategy and

restrictive measure where they are targeting of 2% movement of the script or share within two

minute time duration. Means if any share or script shows 2% up down in price movement, then

script should ultimately suspend the transaction in that share or script for few time only. Putting

2% trigger in 2 minute will ultimately restrict majority of the freak trading in the market. It also

prevents massive loss in the market capitalization due to various scams and freak trades in the

market.

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SEBI is under the surveillance of this preventive measure and hopefully these restrictive

practices will be implemented soon in stock exchanges.

Transformation in Infrastructure: -

In 1992 Security and Exchange Board act was passed to control the stock market

movements of the country. SEBI came out with screen based trading system which made trading

so secure and easy. In screen based trading system, majority of the shared needed to format in

dematerialized format. In the transformation, majority of the brokers and investors needed to

transfer to online trading system which ultimately provided faster delivery and transaction in

stock market.

To prevent freak trading in stock market, SEBI is coming out with the issue of one

password to each trader which ultimately reduces the various trades by single password creating

restrictions of freak trade in the market. By providing single password to the trader the mistake

can be traced easily and restrictive measures can easily been taken. Thus this transformation of

better infrastructure provides various benefits to prevent freak trading in the country.

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BIBLIOGRAPHY:

http://www.business-standard.com/article/markets/nifty-dips-15-in-freak-trade-emkay-order-

causes-15-min-disruption-112100500107_1.html

http://economictimes.indiatimes.com/topic/Freak-trading

http://www.goodreturns.in/news/2012/10/05/freak-trade-draws-sebi-probe-145127.html

http://www.firstpost.com/investing/emkay-freak-trade-after-crash-exchanges-want-narrower-

trading-band-482730.html

http://www.mydigitalfc.com/news/sebi-weighs-pause-option-risk-check-foil-freak-trade-364

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trade-annulment-rules/29030.html

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uncertain-dealers.html

http://www.firstpost.com/investing/freak-trade-again-nse-probes-decline-in-tata-motors-

ultratech-610903.html

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http://www.moneycontrol.com/news/market-edge/freak-trade-to-cost-emkay-rs-51-

crtalksbrokers_765857.html

http://www.business-standard.com/article/markets/freak-trade-at-nse-rs-3-lakh-cr-erased-in-2-

minutes-112100600062_1.html

http://profit.ndtv.com/news/corporates/article-freak-trade-in-tata-motors-ultratech-shares-

due-to-system-error-religare-capital-317223

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Education

Freak trading Research Paper