There are many tech-glitches where you might have heard of huge losses of traders & investors. But recently, we came across a case where the trader earned a profit of ₹80,000 due to technical glitch in the app but what happened next left the client with only disappointment.
However, there is a regulatory and market participants that are there to protect investors interest giving hope to thousands of investors and traders to get justice and recovery of their lost amount.
Here is the complete detail of how the broker once again thought of his profit keeping his client interest aside.
So, let’s call a victim Naman who used to trade using the trading app of one of the renowned brokers. He approached our team and narrated the complete incidence as below:
Naman: Hello Sir, I wanted to report a complaint against my stock broker.
ADB: Okay, please provide details of what actually happened.
Naman: It is a case of technical glitch due to which my positions were auto-squared off around 3:15 PM yesterday.
ADB: So, how much money did you lose?
Naman: No sir, I didn’t lose any amount. Instead I earned a profit of around ₹80,000.
ADB: So, what is the concern?
Naman: Later in the evening, when I checked the app, I saw that all my profit has been taken away.
ADB: That’s strange. Did you contact your stock broker?
Naman: Yes I did. They said that the position was auto-squared off due to tech glitch and since the profit earned was because of the error in the app, the profits were reversed.
They said that the profit could not be considered as valid and that is why the adjustment was made.
ADB: That’s not at all fair.
Naman: Exactly. And the thing is that I took the risk of taking those positions. So, if I am asked to be responsible for losses every time when the glitch occurs then why can’t the profit earned be considered as valid.
ADB: What was your last conversation with your broker?
Naman: They said that they took responsibility for the glitch and offered me ₹8,000 as compensation.
ADB: Do you have proof of all these?
Naman: Yes sir I have some messages as well as call recordings.
ADB: In this case, you can file a complaint in NSE and further lodge a complaint in SCORES to get recovery of your lost amount.
Naman: Okay, thanks for the guidance. But is there any guarantee that I would get back my capital?
ADB: Yes there is, as brokers are registered entities and you have the right to file a complaint against stock broker in market regulatory portal.
If you come across any kind of unfair practices by stock brokers take a quick action against it by reporting your concern. The matter of technical glitch is common and there is no doubt that in every tech-glitch of the app, thousands of traders lose money.
In this case, where the traders fortunately earned profit due to glitch, the broker has no right to reverse it.
This shows how stock brokers think of their business and profit over their clients. SEBI must take a strict action against such matters and moreover should penalized stock brokers heavily in cases where they fail to meet the tech-requirement to handle multiple order requests
