Lok Sabha Question No. 4294 (UNSTARRED), answered on 2021-03-22
Subject: Reputation of Indian Stock Exchange
Ministry: FINANCE
Asked by: Anumula Revanth Reddy

## MINISTRY OF FINANCE DEPARTMENT OF ECONOMIC AFFAIRS

LOK SABHA

QUESTION NO. 4294

TO BE ANSWERED ON MONDAY 22nd MARCH, 2021/ CHAITRA 1, 1943 (SAKA)

## Reputation of Indian Stock Exchange

## 4294. SHRI ANUMULA REVANTH REDDY:

Will the Minister of FINANCE be pleased to state:

- (a) whether a sudden halt in trading for four hours at the National Stock Exchange on 24th February 2021,is likely to  damage  the  reputation  of  Indian  Stock Exchange  at  a  time  when  foreign  investors  have been  flooding  the markets and taking them to historic highs;
- (b) if so, the details thereof along with the reaction of the Government in this regard;
- (c) the details of Foreign Institutional Investors(FIIs) investment in Indian Market on 22nd, 23rd, 24th, 25th, 26th February 2021; and
- (d) whether FIIs investment was highest on 24thFebruary 2021 and if so, the details thereof?

## ANSWER MINISTER OF STATE FOR FINANCE (SHRI ANURAG SINGH THAKUR)

- (a) and (b) On February 24, 2021, the National Stock Exchange of India Limited (NSE) took a decision to halt trading from  11:40  a.m  due  to  technical  issues. However,  the  system  of  interoperability  among  clearing corporations which allows market participants to consolidate their clearing and settlement functions at a single Clearing  Corporation,  irrespective  of  the  stock  exchange  on  which  the  trade  is  executed,  continued  to  remain functional. The trading at NSE resumed from 03:30 pm and trading hours were extended from 03:30 p.m. to 05:00 p.m. for the day in all the three stock exchanges, viz. NSE, BSE and MSEI to enable investors to square off their existing positions.

The Department of Economic Affairs (DEA) has advised SEBI to review the issues leading to the halt in trading in  NSE  and  the  corresponding  disaster  recovery  process.  DEA  has  further  advised  SEBI  to  take  necessary measures to ensure that all the underlying issues leading up to the market disruption are addressed appropriately.

- (c) The details of investment made by Foreign Portfolio Investors (FPI)/ Foreign institutional investors (FIIs) in the Indian Market on 22nd, 23rd, 24th, 25th and 26th February 2021 are as follows:
- (d) FPIs made a net investment of Rs.2,332 Crores on February 24, 2021. However, it was not historically the highest.

| Date        | Equity (in crores)   | ₹ Debt (in crores)   | ₹ Hybrid (in ₹ crores)   | Debt (Voluntary Route*) (in ₹ crores)   | Retention Total (in ₹   | crores)   |
|-------------|----------------------|----------------------|--------------------------|-----------------------------------------|-------------------------|-----------|
| 22-Feb-2021 | 932                  | (648)                | (68)                     | 134                                     |                         | 349       |
| 23-Feb-2021 | (493)                | (796)                | (68)                     | 2                                       |                         | (1,356)   |
| 24-Feb-2021 | (345)                | 465                  | (44)                     | 2,256                                   |                         | 2,332     |
| 25-Feb-2021 | (300)                | (1,730)              | (37)                     |                                         | (731)                   | (2,799)   |
| 26-Feb-2021 | 1,790                | (2,028)              | (47)                     | 192                                     |                         | (93)      |

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