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The National Stock Exchange has sought explanation from a member over Nifty futures trades that were higher than prevailing price on July 5.

In a statement issued on Tuesday, the exchange said that it has received some enquiries about certain Nifty futures trades that were higher than the prevailing price on July 5, 2021.

"An explanation has been sought from the member as to why the order was placed at a price higher than prevailing price in the market which could have misled the market," it said.

The bourse further said that on Monday (July 5), at the time of market opening, a trading member's dealer placed a manual buy order for Nifty Near Month Futures in the first few seconds upon opening of the market at a price which was significantly higher than the prevailing price in the market.

Since the order was within the operating range, it matched with the existing sell orders in the order book and two trades got executed at a price within the trade execution range, it said.

The dealer subsequently cancelled the remaining order. In the meanwhile, there were some orders that were received from the other members at prices similar to the above mentioned order and orders, which were within the trade execution range were executed, the NSE said.

"We would like to reiterate that the exchange systems functioned normally and all orders were executed as per the operating and trade execution ranges as prescribed," it said.