E-Paper
BSE and RBI deny technical glitch causing mutual funds to lose money on election results day
A technical glitch on election results day caused orders to go through the next day, causing losses for investors.
Broking platforms alleged the possibilty of a glitch in the mutual fund system of the Bombay Stock Exchange (BSE) on the day of the national elections, which caused orders to go through the next day, after the markets had already recovered, with BSE denying it was at fault, according to an ANI report.
Many users posted on X (formerly Twitter) that they purchased a mutual fund through online apps on June 4 but NAV (Net asset value) showed for June 5, ANI reported.
Several investors on apps like Zerodha, Groww, Upstox, and Angel One vented their anger on social media platforms about their inability to square off their positions in equities or F&O, according to the report.
The Indian stock market witnessed its biggest fall in four years on June 4, when the 2024 Lok Sabha election results were declared, showing the Bharatiya Janata Party (BJP) winning a lesser number of seats compared to exit poll estimates.
The heavy fall in share prices led many investors to place purchase orders to take advantage of the low prices. However, many of these orders were processed the next day, when the market had bounced back by 3%, the report said.
Also Read | Sensex touches record high days after stock market crashed on counting day
"There was no technical glitch at the exchange end on 4th June. However, there was some lag in receiving payments from UPI channel for a few customers," said a BSE spokesperson.
The RBI denied to comment on the matter during the monetary policy press conference, but said they are making efforts to reduce downtime for UPI transactions.
Daily UPI transactions are between Rs.40 to 45 crore so there is a lot of pressure, the RBI said, adding that there is no delay from the NPCI’s end, but there may be some delay at the banking end, which the central bank is trying to resolve in coordination with specific banks.
Also Read | Sensex jumps 600 points as RBI raises FY25 GDP growth forecast
