This happened as the brokerage wanting to place a basket sell order for Rs 65 crore for an institutional client punched in an order worth Rs 650 crore by error.
Even as Sebi and NSE have initiated a probe, experts have raised doubts over the risk management system, and the shallow depth of the Indian stock market was exposed.
What was surprising was that the incident did not involve any high-frequency or algorithmic trading on the part of Emkay, unlike some stock-specific crashes like in the case of Infosys in the past.
NSE Senior VP Ravi Varanasi said: "There was no technical glitch. It was a normal market order."
He clarified a large order was placed erroneously and trading was not halted for a longer duration, as required under the norms, because the entire market could not be made to suffer.