Broking platforms have suggested the possibility of a glitch in the mutual fund system of the Bombay Stock Exchange (BSE) on the day of the national elections, causing orders to process the next day after the market had already recovered. BSE has denied any fault, according to an ANI report.
Numerous users on X (formerly Twitter) reported that they purchased mutual funds through online apps on June 4, but the Net Asset Value (NAV) reflected the date of June 5, ANI reported.
Several investors using apps like Zerodha, Groww, Upstox, and Angel One expressed their frustration on social media about their inability to settle their positions in equities or futures and options (F&O).
The Indian stock market experienced its largest drop in four years on June 4, the day the 2024 Lok Sabha election results were announced, revealing that the Bharatiya Janata Party (BJP) had won fewer seats than predicted by exit polls.
The significant decline in share prices prompted many investors to place purchase orders to capitalize on the low prices. However, many of these orders were executed the next day, when the market had already rebounded by 3%, the report indicated.
“There was no technical glitch at the exchange end on June 4. However, there was some lag in receiving payments from the UPI channel for a few customers,” a BSE spokesperson stated.
The Reserve Bank of India (RBI) declined to comment on the issue during the monetary policy press conference but mentioned efforts to reduce downtime for UPI transactions.
With daily UPI transactions amounting to between Rs. 40 to 45 crore, the RBI acknowledged significant pressure on the system. They added that there is no delay from the NPCI’s end, but there may be some delays at the banking end, which the central bank is working to resolve in coordination with specific banks.
