Experts took to social media on Wednesday to react to the major technical snag that led the National Stock Exchange of India to shut down temporarily.
“I am remembering today the Russian market shutdowns in 1998: Russian authorities would wait for Europe to open, see if markets were Green, if yes, open Russia for trading. Else keep it shut. Today’s, Asia market action is ugly….” Shankar Sharma (@1shankarsharma), the Vice-President and Strategist of First Global, one of India’s best performing portfolio management services companies wrote on Twitter.
Market expert Ajay Bagga and investor and author Basant Maheshwari recalled a quote from American investor, business tycoon and CEO of Berkshire Hathaway, Warren Buffett.
‘Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years’ Warren Buffett Remembering this quote as the #nseindia shuts down today. Institutional investors would have risk limits, country limits, retail investors left clueless. Remember this, “ tweeted Bagga (@Ajay_Bagga).
“Buffett said let them close down the exchange for 10 years. And now we are just 1 hour into it. Hope @NSEIndia doesn’t take Buffett too seriously,” Maheshwari (@BMTheEquityDesk) tweeted jokingly.
Bagga further echoed his sentiments regarding the lack of clarity following the shutdown.
“Am sure a thought out solution will be brought out by the regulator and the exchanges on positions, rollovers, expiry and margins. We have to weather this crisis and move on.
Many systemic insights from today’s failure. What does not kill the markets,makes them stronger,” he wrote.
“Our training in Financial Services was, 1. Communicate upfront and dimension the issue 2. Keep building Trust and handholding by transparent communication. Nothing being done today as the exchange shuts down. No communication, no reassurance and no confidence boosting,” he tweeted.
“Contingency planning, business continuity and disaster recovery were fundamentals in our training. Auditors would not allow a business to launch without testing these. What happened today with the exchange shutdown ? And no communication . At least talk to investors and reassure?” he further wrote.
“While fixing the issues why cant an announcement be made that Expiry is extended, No penalties today . Rest we will get back to you, doing our best. That is all,” he added.
Vishal Mehta, an independent trader and founder of the marketscanner.in blog questioned the NSE in terms of its preparedness for such glitches.
“#NSEOutage : Question to @NSEIndia . I understand there is a problem with telecoms but what about Disaster Recovery sites. We think that you would have planned for that when you do those mock session @SEBI_India #nseindia #NSEOutage #NSETechnicalglitch #nsedown,” tweeted Mehta (@vishalmehta29).
Abhay Agarwal, Fund Manager, Piper Serica PMS and Piper Serica India Numero Uno Fund said ” Absolutely shameful what is happening at NSE. Senior management should be held responsible for spoiling the reputation of our capital markets. I hope SEBI and fin min take strong action.”