Policy for annulment of trades undertaken on stock exchanges

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....executed on trading platforms of the stock exchanges, to the extent possible, annulment of trades should be avoided by the stock exchanges. 2. In order to bring about uniformity and transparency in the process of trade annulment, a discussion paper was placed on SEBI's website to seek views and suggestions of the public. Taking into consideration inputs received during the discussion process, it has been decided that stock exchanges shall be guided by the following provisions with regard to the mechanism for annulment (or by whatever named called) of trade(s) resulting from material mistake or erroneous orders: 2.1. Examination of trade(s) for annulment may be taken up either suomoto by stock exchange or upon receipt of request from a st....

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....n writing, in the interest of the investors, market integrity, and maintaining sanctity of price discovery mechanism. 2.8. In cases, wherein request for annulment of trade(s) has been submitted to more than one stock exchange by a stock broker, in respect of similar trades, stock exchanges shall jointly take a decision on such requests. 2.9. Stock exchange shall convey its reasoned decision on annulment of trade(s) or price reset to all counterparties to the trade(s) under consideration. Stock exchange shall also publish details of such decision on its website. 2.10. A mechanism to request a review of the decision taken by the stock exchange shall be provided. To this end, the aggrieved party shall submit such request to the stock exc....