Why Zerodha Had to Refund the LOSSES to this Trader?
450 هزار بار بازدید -
9 ماه پیش
-
On July 7, 2023, Zerodha's
On July 7, 2023, Zerodha's servers experienced a major problem, preventing numerous retail traders from exiting their positions, resulting in significant financial losses for many.
Hundreds of traders demanded refunds for their losses. At 3:03 minutes, Zerodha tweeted that the issue was due to Internet service providers (ISPs) and only affected the BSE and F&O segments.
All other segments remain unaffected. Among the many traders, there was one named Vijay Gupta. He had taken a short position on a put option for the Sensex at a price of 65,300 Rs.
He was holding 500 contracts with an entry price of 20 Rs. While he was shorting, he anticipated a price drop and, at one point, the price indeed fell, reaching 3 Rs. He attempted to exit the position in anticipation of a big profit, but due to a technical issue in the Kite app, he couldn't exit his position as planned, resulting in a meagre profit of 45 paise.
Frustrated by this situation, Vijay Gupta first reported the issue to Zerodha and subsequently lodged a complaint with SEBI. This complaint made its way to the Bombay Stock Exchange (BSE), which then forwarded it to the Grievance Redressal Committee (GRC).
The GRC organised a meeting, conducted via video conference, where the participants included representatives from BSE, Zerodha's compliance officer, and the trader, Vijay Gupta. Both parties were given an opportunity to present their sides of the story.
During the meeting, Zerodha's compliance officer stated that traders sign papers or a contract during the demat account opening process, acknowledging that the broker will not be responsible for technical issues arising from internet connectivity.
BSE officials raised concerns and posed several questions to Zerodha's officers. After a constructive discussion, the conclusion was that Zerodha would need to compensate the retail trader, Vijay Gupta, with 8,275 Rs.
Additionally, Zerodha was asked to submit a detailed report explaining the nature of the problems encountered and the extent of their impact.
But this is not an isolated case. Due to a glitch in the broking app whether it is Kite, Groww, Upstox or mStock many retail traders suffer significant losses, but this issue often goes unnoticed or unreported due to a lack of awareness. Those who do file complaints often don't receive a refund for their losses.
The hearing is still in process but this Zerodha case offers hope for traders.
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00:00 Intro
01:00 Loss of Trader Due to Glitch and Complaint to SEBI
01:36 Reason for Technical Glitch
01:57 Zerodha's Arguments Against Tech Glitch
02:37 BSE's Questions to Zerodha
03:21 Trader's Side of the Issue
03:41 BSE's Decision on Issue
04:10 Zerodha's Questions to BSE
05:44 This was the First of Its Kind Case
Hundreds of traders demanded refunds for their losses. At 3:03 minutes, Zerodha tweeted that the issue was due to Internet service providers (ISPs) and only affected the BSE and F&O segments.
All other segments remain unaffected. Among the many traders, there was one named Vijay Gupta. He had taken a short position on a put option for the Sensex at a price of 65,300 Rs.
He was holding 500 contracts with an entry price of 20 Rs. While he was shorting, he anticipated a price drop and, at one point, the price indeed fell, reaching 3 Rs. He attempted to exit the position in anticipation of a big profit, but due to a technical issue in the Kite app, he couldn't exit his position as planned, resulting in a meagre profit of 45 paise.
Frustrated by this situation, Vijay Gupta first reported the issue to Zerodha and subsequently lodged a complaint with SEBI. This complaint made its way to the Bombay Stock Exchange (BSE), which then forwarded it to the Grievance Redressal Committee (GRC).
The GRC organised a meeting, conducted via video conference, where the participants included representatives from BSE, Zerodha's compliance officer, and the trader, Vijay Gupta. Both parties were given an opportunity to present their sides of the story.
During the meeting, Zerodha's compliance officer stated that traders sign papers or a contract during the demat account opening process, acknowledging that the broker will not be responsible for technical issues arising from internet connectivity.
BSE officials raised concerns and posed several questions to Zerodha's officers. After a constructive discussion, the conclusion was that Zerodha would need to compensate the retail trader, Vijay Gupta, with 8,275 Rs.
Additionally, Zerodha was asked to submit a detailed report explaining the nature of the problems encountered and the extent of their impact.
But this is not an isolated case. Due to a glitch in the broking app whether it is Kite, Groww, Upstox or mStock many retail traders suffer significant losses, but this issue often goes unnoticed or unreported due to a lack of awareness. Those who do file complaints often don't receive a refund for their losses.
The hearing is still in process but this Zerodha case offers hope for traders.
Download our app Stock Pathshala to learn the Stock Market for free:
https://bit.ly/3rg2h0h
Join the Fraud Free Awareness Program NOW: https://aseemjuneja.in/fraud-free-awa...
Follow us on Social Media Handles:
Instagram - https://bit.ly/adb_insta
Twitter- https://bit.ly/adb_twt
LinkedIn- https://bit.ly/adb_linkdin
🎧 Listen to Our Podcast on Spotify:
https://spoti.fi/3JnpmSQ
🎥Subscribe to our Aseem Juneja Channel:
@aseemjuneja
🎥Subscribe to our Stock Market Learning Channel:
@stockpathshalaofficial
🎥Subscribe to our Vlog Channel
ADB Vlog - https://bit.ly/adb_vlog
✅Visit Our Website
https://www.adigitalblogger.com/
✅Visit our Hindi Website
https://hindi.adigitalblogger.com
00:00 Intro
01:00 Loss of Trader Due to Glitch and Complaint to SEBI
01:36 Reason for Technical Glitch
01:57 Zerodha's Arguments Against Tech Glitch
02:37 BSE's Questions to Zerodha
03:21 Trader's Side of the Issue
03:41 BSE's Decision on Issue
04:10 Zerodha's Questions to BSE
05:44 This was the First of Its Kind Case
9 ماه پیش
در تاریخ 1402/07/24 منتشر شده
است.
450,006
بـار بازدید شده