Finally after 8 months The Securities and Exchange Commission approved Nasdaq OMX group’s plan to distribute $62 million in cash to its investors involved in the famous botched Facebook IPO. All brokerages lost money due to Nasdaq’s system failure caused by its design problem are about to be refunded by The Securities and Exchange Commission.

Facebook went on public by 17th of May last year, but system failure caused a half hour delay in trading creating a huge fuss among the investors. Investors were unable to confirm or change orders. Orders were started by 4:30 a.m and Investors reported their failure in receiving completion of transaction confirmations almost immediately leaving them in a dilemma of whether they owned to stock or at what price. This made the investors turn angry and they started demanding their losses from Nasdaq OMX Group, the parent company of the technology-heavy American stock exchange.

Stock exchange’s staff’s over confidence was considered as the reason for mishandling of Facebook’s IPO. The huge volume of trading done on may 17 and excess number of order cancellations just before offering made the 30 minutes delay. Facebook shares ended up with $38.27 with a 27cent or 0.71 percent rise from their offer price of $38. Nasdaq chief executive Robert Greifeld made an apology to all investors.

SEC believes that a loop which collected orders before the beginning og official IPO trading was set as Nasdaq lost its control over the systems. Nasdaq report says that its working closely with SEC to resolve issues with Facebook IPO.

Wall street journal made an estimation that the losses incurred wound round upto $500 million. Nasdaq primarily submitted plans to offer upto $40 million which would include a $13 million cash payment and others in the form of trade discounts. Those transactions qualified for this refund would be sell orders priced at or below $42 a share that did not execute or executed at an inferior price and Buy orders priced at $42 which didn’t receive immediate confirmations after execution.

The earlier suggestion would include in using the $10.7 million gain from Facebook’s share on the day of IPO and Nasdaq's standing $3 million cap on compensation payable to exchange customers that lose money due to system failures.

The primary plan was then increased as the brokerages felt it was too low. Financial industry regulatory authority (FINRA) would administer the approved plan. Financial industry regulatory authority will also be evaluating all compensation requests made to Nasdaq. A statement of "Pleased" was released from Nasdaq on the approval.

Facebook’s IPO doesn’t seem to end with it. SEC is still making its own investigation on this issue and individual investor’s lawsuits are still in pending condition. The fuss has lead to long time problems including dumping of millions of new shares into market. The company is already in tax debt of $3 billion. Knight Capital Group, Citadel & rocky IPO would be some major brokerage firms that felt huge sufferings from Facebook IPO issue. Citadel and Knight previously said they supported Nasdaq’s repayment proposal.

Nasdaq made accommodation proposals in making modifications to its rules. In current time, the compensation amount to be paid to the investors is strictly within limits and proposals are made to change it. The approval is processed on how the new system would act and what the current system’s problems face by this rule. SEC confined Nasdaq’s proposal to be consistent with laws and something which offered security to the investors. The new proposed rule change is left into huge set of debates. Nasdaq is yet to design its complete fully fledged rule change that’s on process.