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HDFC Securities, Sharekhan users face issues during trading hours, companies claim technical glitch

When Moneycontrol reached out to Navanil Sengupta, Head, Corporate Communications HDFC Securities Ltd, he said: "We suffered a system downtime this morning, however all the platforms were up and running by noon. This incident was due to a technical glitch which we, along with our IT partners, have resolved.

June 24, 2020 / 01:03 PM IST

Users of HDFC Securities and Sharekhan trading platforms were not able to participate in today's trading session for two hours due to a technical glitch.

"Right from the time market started (9:15), the trading platform was down. Only at 1:30 PM it was up butonly equity rates were updated. Futures and options prices were not updating. Only after 2 PM, the issue with F&O prices was sorted," said Anil Kothari, a Mumbai resident who uses the platform.

The S&P BSE Sensex rallied 519 points or 1.49 per cent to settle at 35,430 levels while the Nifty50 index ended at 10,471, up 160 points or 1.55 percent.

When Moneycontrol reached out to Navanil Sengupta, Head, Corporate Communications HDFC Securities Ltd, he said: "We suffered a system downtime this morning, however all the platforms were up and running by noon. This incident was due to a technical glitch which we, along with our IT partners, have resolved. We are currently working to mitigate any such future instances, while ensuring uninterrupted services for our customers."

Today, customers/traders of HDFC Securities and Sharekhan  lost the opportunity to earn a profit on long positions or exit their loss making short positions as the company's platform did not allow them to execute any transactions.

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Jaideep Arora, CEO of Sharekhan by BNP Paribas told Moneycontrol, “We faced some issues on Monday June, 22nd. Due to a technical issue auto updation of status was not happening for some orders. We updated these orders using a different process to limit as much as possible impact on customers. All the NSE and BSE orders were successfully placed in Exchanges. At the end of the day we managed to solve the problem for all customers. We regret the inconvenience this incident caused and are working hard to avoid future similar incidents.”

The capital market regulator, the Securities and Exchange Board of India has dedicated chapter called Trading Software and Technology under its Trading Member Regulations.

Therein, SEBI prescribes a long list of conditions to be met by broker for Internet Trading services.

Having put in place a cyber security framework , SEBI had initiated exercise in September 2019 to penalise broking systems for technical glitches causing widespread investors losses for no fault of their own.

Investors have been demanding annulment or reversal of trades that happen due to technical glitches of trading systems.

But SEBI Annual report 2019 differs in opinion saying that , “it is difficult to undertake such an exercise since the trades always involve counterparties and reversing a select few trades could have market-wide impact.”

It's recalled in a similar incident in September 2019 wherein a similar trading dysfunctionality was noticed for half a day, across internet brokerages like Zerodha, ICICI Direct etc.

The fault was traced due to delay of NSE Futures price feeds to the broking platform.

SEBI was reportedly looking to penalise the exchange system.

There have been murmurs about a lot of dithering on the issue.

As is the norm with a new proposed rule, SEBI put out a discussion paper on its website. However, the final word is yet to be out on which way should it proceed.
Himadri Buch
first published: Jun 23, 2020 06:42 pm

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