Discount broker Shoonya faces glitch, users complain of bogus orders, huge losses

The issue was unresolved as of 2.40 pm.

Traders using Shoonya broker accounts are complaining of a glitch in the system since April 13 morning, leading to ghost orders in large quantities and accounts showing huge losses.

The company said it was aware of the issue and was working to resolve it. “We're aware of technical issues affecting some services and regret the inconvenience caused to some of our customers,” it said in a statement. “Our team is working hard to resolve this glitch ASAP (as soon as possible). We value your patience & will keep you updated on progress.”

The issue remained unresolved till 2.40 pm.

A user said the system was behaving “insanely”. “My capital is 2.5 lakh and now it’s showing overall loss of 6.5 lakh, earlier before error, I was in profit of 30,000. I am unable to close any position, still orders are getting placed automatically,” a user tweeted.

Another user citing the same isses added that the broker's call support/website was unresponsive. Some of the traders we talked to also said the company was not heeding to their calls.

The banker-cum-trader said he did not place the topmost order in this picture neither he had the capital to place such an order. Placing that order would usually require Rs 35 lakh margin but this user had only Rs 3.5 lakh in his account.

Shoonya is promoted by Finvasia. Its unique selling point is it does not charge any type of commission on trades, hence Shoonya, which is zero in English. It also promises zero trading & demat account opening and AMC charges, zero clearing fees for trading on NSE and BSE, irrespective of the volume of trade.

A banker who runs algo trades using Shoonya app told Moneycontrol that the problem started surfacing right after the first few trades went in. “When I tried to make an adjustment at 9.22 am, my orders were rejected. Soon after the company alerted us that users might face some problems.”

Gowri Shankar, another user, said he was also losses due to this glitch.

Error faced while closing an open position by a Shoonya user.

“I was trying to modify my orders but was unable to do so initially. After 10 am, they started placing orders on their own,” said Shankar, who added that he also had taken some counter trades via other broker’s account but since he was unable to square off positions at Shoonya, those trades have also run into losses.

Several other traders we spoke to also had similar complaints. Some questioned whether they will get refund for their losses or not. For a few, losses were in tune of couple of crores.

Meanwhile, the company in an alert to customers at 2.51 pm said the order quantity  or information shown on the screen "may not be updated and correct".

Ongoing technical glitch affecting our services are being addressed with the utmost urgency, we sincerely apologise for the inconvenience caused to our valued clients. pic.twitter.com/TC1VvOSSye

— Shoonya by Finvasia (@ShoonyaApp) April 13, 2023

Some traders have questioned if saving brokerage was more important or saving money.

“Better get a full-service broker, pay brokerage and get good service. Are you in the markets to save brokerage or make returns?,” said Prem Doshi, a trader, on Twitter.

Update: Earlier version of the copy erroneously attributed Rs 2 crore loss for Gowri Shankar. The loss was reported by another user. The story has been updated to reflect the change.