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Nalini D'Souza
Mumbai, Dec 7: In yet another instance of a punching error, the badla session last Saturday at the Bombay Stock Exchange (BSE) witnessed a goof-up at the Philips India counter.
This time around, it was a dealer at the broking outfit of Shrikant Mantri, a BSE broker, who punched 5,000 on the price icon, while he intended to enter a purchase order of 5,000 shares at the hawala price of Rs 127. This led to a steep rise in the badla rates at the counter to a high weighted average of Rs 23.12, while actual outstanding price was indicative of a badla charge of Rs 0.30.
It is learnt that the sellers at the counter were Deepchand Taswalla and BD Shroff. According to top BSE officials, this was the first time when the seller called up the exchange to confirm whether the deal was punched in by mistake.
``Although such a mistake would provide ample opportunity for the seller to earn an interest of over 200 per cent, the brokers immediately called upon the buyer and the exchange to confirm the deal,'' said the BSEsource. As per the exchange's rules, the buyer has to take delivery of the stock.
However, since it was merely a punching error, it is learnt that the exchange would allow the broker to cancel the trades. It is also learnt that in view of the mutual consent with the seller, the buyer would be allowed to reverse his `sauda' or trades.
Interestingly, Philips has been under the bear grip, with the stock moving in the southward direction to close at a low of Rs 126 on Friday. However, the hawala price was pegged at Rs 127, with the total outstanding quantity at 2,81,500 shares, the carry forward purchase quantity at 2,80,300 shares and the sale position at 35,400 shares. The stock has been moving southwards, on the back of FII sales. The stock moved down from the week's high of Rs 143 registered on November 30, the first day of trading settlement on the BSE to a low of Rs 126.60 on December 4, Friday.
It should be recalled that a similar punching error took place at the ITC counter on December 4 interms of both price and quantity, where JGA Shah, the former vice-president of BSE punched in both the quantity and the price wrong, which has led to a probe by the exchange authorities.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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