J.P.Devadhar, J. (Presiding Officer) - (1.) IN these three appeals dispute relates to trades that were executed on National Stock Exchange on October 5, 2012, wherein these three appellants as well as respondent nos. 4 to 9 are parties to the trades. Hence these three appeals are heard together and disposed of by this common judgment. Appeal No. 64 of 2013
(2.) APPELLANT herein is aggrieved by the decision of National Stock Exchange of India Limited ("NSE" for short) dated April 29, 2013 whereby, application made by appellant on October 7, 2012 for annulment of trades executed by appellant's dealer on October 5, 2012 has been rejected. Although appellant had claimed annulment of all trades executed by appellant's dealer on October 5, 2012, at the hearing of this appeal before us, counsel for appellant has restricted claim for annulment of only those trades wherein respondents no. 2 to 9 are counter parties to the trades. Case of the appellant in nutshell is that the trades executed on October 5, 2012 constitute "material mistake in the trade" under Bye law 5(a) framed by NSE and hence those trades are liable to be annulled. NSE however, has rejected the claim on ground that if the appellant had complied with regulatory requirements by installing prudent risk management and order management system at the dealer's terminal, no mistake could go unnoticed and even if any order was erroneously punched, remedial measures could be taken before erroneous order went out of dealer's system and reached NSE's trading system and therefore in the facts of present case, appellant being grossly negligent, trades in question cannot be considered as 'material mistake in the trade' and consequently the said trades cannot be annulled.
(3.) FACTS relevant for purpose of this appeal are that appellant is a public limited company and is engaged in the business of providing financial services i.e., the business of stock -broking and advisory services. Appellant claims to have significant market share across all the market segments and claims that its average daily cash market turnover is approximately Rs. 139 crores.;