Glitch on BSE Star MF platform disrupts mutual fund orders1 min read . Updated: 12 Apr 2021, 04:42 PM IST
- Orders placed through direct investment platforms like Groww and Kuvera as well as mutual fund distributors are routed through the BSE Star MF
Thousands of mutual fund orders failed on Monday due to a glitch on the BSE Star MF platform through which a large share of mutual fund orders are routed. Orders placed through direct investment platforms like Groww and Kuvera as well as mutual fund distributors are routed through the BSE Star MF.
According to a person with knowledge of the matter, who declined to be named, on a daily average around 4.75 lakh transactions for mutual funds are made through this platform.
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Share markets crashed around 3.5% today which would have encouraged large numbers of mutual fund investors to enter the market. Kuvera CEO Gaurav Rastogi tweeted that the platform saw its single largest day transaction in terms of order placement today. A Sebi-registered investment advisor, whose client orders could not go through in time due to the glitch, confirmed that several clients have been unable to take advantage of the market crash due to the failure. The aforesaid advisor declined to be named.
Equity orders must be placed before 3 pm to get the same day’s NAV. According to the aforesaid advisor, the outage occurred around 1-3 pm. In addition, Sebi rules that went into effect this year stipulate that mutual fund units are to be allotted only when the purchase amount reaches the fund house. As a result, even a few hours of delay can push an order into the next day’s cycle.
"We received a few complaints from some members on the slowness of the response of MF star system today between 1230 pm and 130 pm. BSE Star MF system has more than 68,000 direct members. Most of the members were able to conduct their business normally throughout the day. BSE star MF is an order aggregation system which sends the data to RTAs at the end of the day and does not have the response time related criticality which equity and derivatives trading systems have with price time priority. All 17.83 lakh plus orders received today, highest ever, have been conveyed to respective AMCs/ RTAs," said a spokesperson for BSE.
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