Indian equity markets have experienced a turbulent week, marked by significant fluctuations in prices. While local investors remained active, mutual fund investors faced challenges with regards to the net asset value allotted. Complaints emerged on social media as investors who placed orders on June 4 found themselves with units allotted at the NAV of the following day. This discrepancy resulted in substantial notional losses, especially as the market saw a notable rebound shortly after the crash. The glitch at BSE StAR MF, the platform for online mutual fund orders, was initially blamed for the issue. However, BSE clarified that it was a technical glitch, citing delays in receiving credit/payment details from banks or payment aggregators. A delay in transaction processing was attributed to some banks and aggregators struggling to handle the surge in orders. The process involves investors’ ‘buy’ requests, subsequent debit from their bank accounts, transfer of funds to an aggregator, and forwarding to the mutual fund. With the surge in volume on Tuesday, delays in fund transfers and transaction confirmations were reported. The issue was highlighted during the latest RBI press conference, indicating efforts to reduce UPI channel downtime. Investor grievances are expected to be addressed by market and banking regulators, as current parties evade responsibility. Investors seeking resolution are directed to the SEBI Complaint Redressal System website.
