Seeking compensation for tech glitches could be a tough task for investors

Lawyers say compensation may be an uphill task for investors because of a lack of judicial precedent and broader institutional difficulties

Mahesh Chauhan* was betting that the markets would fall after the Budget. He built his positions accordingly.  All he could do was watch when the S&P BSE Sensex rose over 2,000 points instead.  There was a technical glitch at his discount brokerage. He had no way to cut his losses. And he’s been fighting for compensation since.

Somewhere along the way, he realised that two clauses on a form he signed absolve the broker and the stock exchange of any liability in the event of a technical glitch. This may also affect any investor who seeks compensation for a subsequent