The issue was largely faced by a section of investors using discount broking platforms like Zerodha and Groww.
Scores of investors complained on social media platforms that their purchases reflected Wednesday’s NAV when the market recovered half of Tuesday’s losses.
“We wish to clarify that on the day, ICCL successfully processed more than 3.2 million subscription orders amounting to Rs 2,445 crore,” ICCL said in a statement.
Tuesday was not the only day this week when retail investors were unable to execute trades at their will.
Even on Monday, when benchmark indices had hit record high, some investors could not sell their stocks due to glitch at depository firm Central Depository Services Ltd (CDSL).
Mutual fund investors were left in a lurch on Tuesday when they placed orders hoping to buy the dip after market crash but their allotments reflected the next day’s Net Asset Value (NAV) after market recovered half its losses.
The issue was largely faced by a section of investors using discount broking platforms like Zerodha and Groww. A spokesperson from Zerodha told FE that 2-3% of transactions on its platforms were impacted.
“We work with multiple payment aggregators, and one of them faced issues on Tuesday. We do not have control over payment reporting since the broker-level funds pooling mechanism was discontinued back in 2022,” said Neelesh Verma, product head and AVP, Coin by Zerodha, in a statement.
Also Read 8th Pay Commission Salary Structure: How much pay hike central govt employees can expect! Senior Citizen Fixed Deposits offering up to 9.50% return in June – Check latest FD rates 7th Pay Commission: It’s confirmed! Gratuity limit for govt staff up 25% in line with DA hike – Details here RBI Policy: Good news for fixed deposit holders! FD rates may rise further – Here’s how
Benchmark Nifty 50 and Sensex had tumbled over 8% during the trading on Tuesday, recording their bigggest intraday decline in four years, as counting of votes for Lok Sabha elections sprung a surprise verdict with the Bharatiya Janata Party (BJP) failing to secure majority. However, the BJP-led NDA coalition comfortably crossed the majority mark.
Many investors saw the sharp decline as an opportunity to enter the market. As per the Securities and Exchange Board of India’s regulations, for any purchase transaction received upto cut-off time of 1500 IST on a business day, the same day’s NAV shall be applicable.
Also Read ICCL clarifies no delays on their part in June 4 mutual fund subscription processing
However, mutual fund investors alleged that this did not happen on Tuesday. Scores of investors complained on social media platforms that their purchases reflected Wednesday’s NAV when the market recovered half of Tuesday’s losses.
BSE and its wholly-owned subsidiary Indian Clearing Corp (ICCL) clarified that there was no delay in processing of the orders at their end. “We wish to clarify that on the day, ICCL successfully processed more than 3.2 million subscription orders amounting to Rs 2,445 crore,” ICCL said in a statement.
However, ICCL added that some instances have been brought to the notice wherein, delay was prima-facie attributable to payment aggregators/banks involved in the process of subscription, and hence transactions of some investors could not be processed in time.
Tuesday was not the only day this week when retail investors were unable to execute trades at their will. Even on Monday, when benchmark indices had hit record high, some investors could not sell their stocks due to glitch at depository firm Central Depository Services Ltd (CDSL).
Shrini Viswanath, co-founder of Upstox said, “Barring the impact caused by the intermittent TPIN issue faced across the industry at the depository’s end, our platform successfully withstood the increased traffic and demonstrated remarkable resilience during this period.”
