Can investors seek compensation if brokers or exchanges face outage?1 min read . Updated: 03 Apr 2021, 12:39 PM IST
- If investors seek compensation, they will need to prove that the technical glitch was beyond the control of the broker or exchanges, but establishing it is an uphill task
If an investor builds stock positions based on a particular event, such as elections, and suppose his/her call didn’t work, the person may want to sell the stock to avoid a huge loss. What happens if the order is not executed due to a technical glitch at the broker's end? The investor’s losses may multiply by the time the broker fixes the outage. Can the investor seek compensation from the broker?
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