Broking platforms have alleged a potential glitch in the mutual fund system of the Bombay Stock Exchange (BSE) on the day of the national elections, which caused orders to be processed the following day after the market had rebounded, according to a report by ANI. Despite these allegations, BSE has denied any fault on its part.
Numerous users reported on social media platform X (formerly Twitter) that they purchased mutual funds through online apps on June 4, but the Net Asset Value (NAV) reflected for June 5, ANI reported. Investors using platforms such as Zerodha, Groww, Upstox, and Angel One expressed their frustration on social media over their inability to square off positions in equities or futures and options (F&O), according to the report.
On June 4, the Indian stock market experienced its largest decline in four years, coinciding with the announcement of the 2024 Lok Sabha election results, which revealed the Bharatiya Janata Party (BJP) winning fewer seats than predicted by exit polls. The sharp drop in share prices prompted many investors to place purchase orders to capitalize on the low prices. However, these orders were executed the next day when the market had already recovered by 3%, the report stated.
“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,” said a BSE spokesperson.
The Reserve Bank of India (RBI) declined to comment on the issue during a monetary policy press conference but mentioned efforts to reduce downtime for UPI transactions. The RBI noted that daily UPI transactions range between Rs. 40 to 45 crore, putting significant pressure on the system. They clarified that while there is no delay from the National Payments Corporation of India’s (NPCI) end, there might be delays at the banking end, which the central bank is working to address in coordination with specific banks.