In July 2024, a Zerodha user publicly shared how a technical glitch on the Kite platform resulted in a ₹10 lakh trading loss. This wasn’t a case of high-risk options or leverage—it was a backend bug. The incident shocked the trading community and raised serious questions about broker accountability and investor protection in India.
What Was the Zerodha Glitch That Caused This Loss?
The bug occurred when the user placed market orders around 9:19 AM. These appeared “OPEN” on the platform, despite being executed on the NSE backend.
The user was unaware that the trades had gone through. Multiple cancel attempts failed—not because the exchange rejected them, but because Zerodha failed to update the order status on their platform.
Zerodha later admitted it was due to a developer-side implementation error, not connectivity or volatility issues. This small gap in sync between Zerodha’s platform and the exchange caused massive financial damage.
Did Zerodha Accept Responsibility and Refund the User?
Yes.
They did in this case.
However, at first, the platform offered a vague explanation. But once the user shared proofs and outrage spread on social media, Zerodha refunded ₹9 lakh within 48 hours—a rare example of swift resolution in Indian broking.
Zerodha’s official communication acknowledged that the bug was internal. They didn’t blame the exchange or market volatility, which is usually the go-to excuse.
In this case, Zerodha took the ownership of the lapse and returned the complete losses back to the trader. Generally, the brokers use the IBT (Internet based trading) clause that is part of the account opening form saying that, we do not have control on such technical lapses.
Interestingly, the IBT clause is there to help the brokers in such cases. Zerodha has also used this clause multiple times in various glitch situations. However, in this case, they did not do that.
How We Help in Technical Glitch cases?
While this case grabbed headlines due to the amount and visibility, we’ve documented several such platform-related losses at AseemJuneja.in.
For example:
Most of these cases are brushed off by brokers as “market volatility” or “network lag” and no money is refunded. However, in the cases we have taken up, a decent chunk of them saw refunds at the complaint level itself, if not during counselling or arbitration stage.
What to Do If You Lost Money Due to a Broker Glitch
Well there are a few things, that you must ideally be doing while facing a technical glitch yourself – for it can happen to any trader with any broker at any given point in time.
Step 1: Capture Evidence Immediately
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Take screenshots or screen recordings
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Log order timestamps and reference numbers
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Save chat logs with broker support
Step 2: Raise a Complaint With the Broker
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Use the in-app ticket system or email
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Request a written response explaining the issue
Step 3: File a Complaint with SEBI
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Use your documented proof
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Escalate if broker responses are vague or misleading
Step 4: Register Your Case With Us for Support
At AseemJuneja.in, we help traders:
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Structure complaints with proper timelines
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Create your statement of claim that needs to be submitted with the regulator.
- Represent you in all the counsellings/arbitrations (separately)
Final Words: Don’t Stay Silent. Take Action Now.
If you’ve faced issues like:
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Orders stuck or not visible
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Executed trades showing as pending
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Funds debited but no trade recorded
Do not stay quiet. It is your hard earned money after all. File your concern with the regulator or fill the form below if you need any assistance from us in taking it ahead.
