A broker is not allowed to place orders on your behalf. A broker is allowed to exit your positions if your account is in debit/doesn’t have sufficient balance, but not for any other reason.
You can register an e-complaint with NSE here.
1 Like
Complaints are made to the NSE or to the SEBI ? When to approach either of them or to both ?
Even if you approach SEBI, it gets directed to NSE/BSE. So best to raise it with NSE itself, especially for account-related issues. But if you think there is something which is more systemic, affecting a lot of customers, maybe then raise it with SEBI also.
https://twitter.com/MaheshMNMS/status/1656239070497087488
This is technical error by Zerodha. Now, its hard to judge, if it can be classified as “trading without client permission”, but a case can be made. Zerodha refused to provide refund.
Seems very dangorous to me. Is there literally no way in India to trade/invest without the risk of losing all your money in trading account plus even more, even if you are not taking a risk?
To summarize his issue: He placed some orders two times but got rejected. But at 15:56 he finds out, Zerodha executed those orders via NSE and at the same time, told him, they were rejected. Please correct me, If i misunderstood.
Business idea: Start selling insurance that covers loss due to technical glitch, i will buy it.
1 Like
This is very dangerous. No broker is safe. Definitely complaint should be filed against Zerodha by the affected traders.
Please update the root cause once you find it, this type of glitch looks different and may have lot of downstream impact wrt other brokers too.
2 Likes
Dear @Meher_Smaran @nithin
From what I understand, point to note in this issue is that the zerodha app showed an order as “rejected’
Then the customer placed an other order.
2nd time also same order also rejected.
Then 3rd time, the order was placed, which I believe was executed
AFTER MARKET HOURS, at roughly 15:50, zerodha app shows the “rejected” orders as “executed’
This is the issue
If there is a technical glitch and zerodha is down, then we can take counter positions in another account to reduce risk.
BUT IF ZERODHA SHOWS AN ORDER AS “REJECTED” AND THEN CONVENIENTLY UPDATES IT AS “EXECUTED”, then this is insane.
What are your customers expected to do?
How can we hedge ourselves against this?
DO clarify on this.
The resolution for this issue is important to me too, as a customer & active trader on zerodha since 2017.
Whoa! This is extremely scary and unsettling, if true. When broker says order is rejected, client will always assume that the order did not get executed and will place the order again. If after market closes, the rejected order is shown as executed, intraday positions can become overnight positions and can potentially create huge losses, large enough to even wipe out entire capital
We are writing a post explaining everything that happens behind the trading screen. There are a lot of misconceptions out there.
If the leased lines that connect us to the exchanges are having issues or generally issues with connectivity due to any reason, there are chances that when an order is placed, we don’t get the confirmation back from the exchange. No broker can say that they will not have these issues, as this isn’t really in the broker’s control. When the connectivity is stable, we typically do a reconciliation to ensure that all order status is updated. On this issue day, a couple of hundred orders were affected and we couldn’t reconcile (our daily average count is upwards of 10 million). We are still investigating why the status on these didn’t update and did only after market close on reconciliation.
But hopefully, you understand that some of these things are hard to control for anyone.
I think our team has already spoken about this customer and come to a settlement.
Makes sense.
My suggestion is, the client should know the reason behind order rejection (in this case, “Zerodha didn’t get confirmation from the exchange”). This seems technically possible & easy to implement, unless you get false confirmation from the exchange. I am not sure, what message Kite showed to the client for the rejected order, as he did not mention it.
If you inform the client, the order got rejected because of some issue, then the client can decide & take the risk of placing future orders.