BSE denies tech glitch; bank payment lag delayed MF NAV on poll results day

Leading stock exchange BSE on Friday said lag in receiving payments from banks led to delay in assigning NAV to investors who bought mutual funds on June 4 and there was no technical glitch at its end.

Many investors had complained on social media for failing to square off their positions.

Several investors purchased their mutual funds before the cut-off time, although they were assigned the Net Asset Value (NAV), which determines the fund's value for June 5 instead of June 4. This resulted in substantial financial losses to such investors.

"It is hereby clarified that there was no technical glitch at BSE Clearing House (ICCL) on June 4th. Prima Facie, there was a lag in receiving details of credit /payments from payments aggregator(s) / bank(s) for few customers which led to the delayed NAV," BSE said in a statement.
 

The clarification came after several broking platforms alleged BSE for a glitch in the mutual fund system of the exchange on June 4, which led the orders to go through the next day (June 5), when the equity markets had partially recouped some of their losses.

Stock market crashed on June 4 the day of Lok Sabha election results in which Rs 31 lakh crore of investors' wealth was wiped out.

Following the exit poll prediction of a resounding victory of the BJP-led NDA, BSE benchmark Sensex shot up on Monday (June 3) by 2,507 points, or 3.4 per cent, to settle at a new closing peak of 76,469.

However, a day later on Tuesday (June 4), the equity markets witnessed a bloodbath, with the Sensex tanking 4,390 points, or 6 per cent, to settle at 72,079.

This was the worst single-day fall in four years. On Wednesday (June 5), Sensex recovered some of their losses with the index soaring over 3 per cent.