Market regulator Securities and Exchange Board of India (Sebi), on Thursday, censured the Bombay Stock Exchange (BSE) for lapses during the share of sale of public sector company, National Mining Development Corporation (NMDC), two years ago.
Sebi has asked the exchange to conduct an independent review and take necessary action.
“The independent consultant should bring out the shortcomings, if any, and suggest remedial measures within a period of three months. BSE shall then fix the responsibility internally,” Sebi said in its order on Thursday.
The matter relates to the government selling nearly 39.65 crore shares of NMDC through offer for sale, or OFS mechanism on the BSE and NSE in December 2012. As per rules stock exchanges have to reconcile all orders and payments in the half an hour after trading closes at 3:30pm with no no orders being accepted afterwards.
Sebi had found that the confirmation of bids for 4.55 crore shares received from Citibank was not concluded within the stipulated time and so the regulator sought an explanation from the BSE for accepting the bids after the cut-off time for trading.