Zerodha, Upstox and some of the other discount broking companies have come under fire for repeated server outages in the recent past.
A spokesperson for Zerodha said there were some intermittent order placement errors on Kite for a few minutes but that has been resolved now and trades are being executed properly. A spokesperson for Angel Broking denied there was any technical glitch and said trading was functioning normal.
Last week, when NSE shut the exchange for trading, some of the brokers came under fire after they squared off client positions without their explicit permission on BSE. Brokers however justified their move blaming NSE for delayed communication.
“Intraday (MIS/CO) trades are taken with margin, as low as 5 per cent of value. Pre-Condition: positions will be forced closed before close as they carry higher risk. Until 3.20 pm, we didn’t know timings would be extended. So sticking to normal square-off timing was the right thing to do,” said Nithin Kamatha, CEO of Zerodha, in a tweet.
“The risk is way higher if those leveraged positions are short as they carry the additional risk of short delivery & auction. Auctions can happen at as much as 20% or more away from the current market price. So it was a no-brainer, we couldn’t expose clients to that risk.”
Meanwhile, an NSE spokesperson said all operations on the NSE platforms were functioning smoothly. Ashishkumar Chauhan, CEO of BSE, also denied any glitches. “No one has reported any problems in trading at @bseindia today or last week any day,” he said in a tweet.