Uneasy Calm at Emkay Global as Co Tries to Contain Damage

Top officials of broking firm rush to arrange funds to cover the loss; co could face Sebi probe The gleaming interiors of the swanky central Mumbai office of Emkay Global Financial Services, which is embroiled in the erroneous trading controversy, exuded a deceptive sense of calm on Friday evening. As the reception area seemed uneventful and empty, what lied within were several questions and doubts over what is in store for the broking firm, which may be remembered, at least for the moment, to have committed one of the biggest trading blunders in Dalal Street history.  The spectre of uncertainty hung in the air, as employees tried to figure out the extent of burden the company would have to take from Friday's trading error, which could cost the company crores.  "We have no knowledge of what has happened. Most of the senior officials left in the morning and could not be seen for the rest of the day. Their secretary, too, does not know where they are. We know everything from the TV channels," an Emkay employee told this reporter on condition of anonymity.  The biggest question on everyone's mind was the amount of loss that the company would have to bear. With wild speculations dotting television screens and nearly no word from their bosses, there didn't seem to be any good answers to these questions. Since the senior management was not around to give them, it was anybody's guess. Another Emkay executive said the managing directors and some business heads of the company left the offices in the morning itself.  Prakash Kacholia, one of the MDs, was reportedly at NSE's office in Bandra Kurla Complex, a business district in Mumbai, arranging for money to fund their losses.  Even as the day's trading glitch dominated conversation, the name and future of the dealer who did it remained ominously absent. As dealing rooms in brokerage firms are often kept isolated from the rest, maybe everybody did not know who made the fatal error.  Executives from the broking firm shuffled out in twos and threes, talking in low voices. A nearby smoking zone offered some respite to frenzied managers answering client phone calls. In fact, several executives were seen, and heard, giving repeated assurances to faceless persons that money would not be a concern for the brokerage house, which has a large institutional desk and also has several high net worth clients in its portfolio management service.  Senior officials were spotted speaking about the various measures the company was taking to keep the business running, the nature of the trading error, and the possibility of an investigation by the capital markets regulator. One of the Emkay employees was heard saying over phone, "Don't worry... We have sold several call options." It isn't clear if this was an assurance to clients or an unknown trading bet.  nihar.gokhale@timesgroup.com