Comments
Stock market trading via mobile apps and online portals involving major players such as Zerodha, Upstox, Groww and ICICIDirect, was disrupted on Monday due to a technical glitch at the Central Depository Services Limited (CDSL).
Hundreds of investors were unable to punch sell orders due to the glitch.
Online discount brokers blamed CDSL, the country’s largest demat services provider. “You may face an issue with authorising the sale of your stocks due to an issue with CDSL. We are in touch with CDSL to have the issue resolved at the earliest,” said Zerodha in a tweet on Monday.
Unable to process TPIN
The problem started with CDSL not being able to process TPIN for selling stocks. TPIN is a 6-digit password, unique to every client, to authorise a broker to debit the chosen stocks from a demat account with CDSL. TPIN is an alternative to the demat Power of Attorney.
CDSL did not issue an official statement, but a source close to the depository told BusinessLine that the issue was resolved by 1 pm and that the glitch was being examined by the technology team.
A large section of retail investors in India’s stock market now depend on discount brokers and mobile apps. The top 5 discount brokers have more than 40 per cent of the total market share in retail segment and, hence, any glitch could pose serious trouble to investors.
CDSL has more than 46.5 million demat accounts and nearly 70-80 per cent of these were opened during the lockdown post-March 2020. During this period, mobile-based trading witnessed a sharp spike in India, as benchmark indices Sensex and Nifty kept hitting new record levels.
Similar issues
Before the CDSL issue on Monday, another large tech glitch was witnessed by the markets in February, when trading had to be halted at the National Stock Exchange for four hours.
Following the repeated tech glitches, market regulator SEBI issued norms to penalise exchanges and other market infrastructure companies. Norms also specify penalty for the top management and technology officials of these institutions for the tech glitch and disruptions.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.