Leading stock exchange BSE stated on Friday that delays in receiving payments from banks caused a lag in assigning NAV to investors who bought mutual funds on June 4. The exchange clarified that there was no technical glitch on its part.
Several investors had taken to social media to complain about being unable to square off their positions.
Many investors purchased their mutual funds before the cut-off time, although they were assigned the Net Asset Value (NAV), which determines the fund’s value for June 5 instead of June 4. This resulted in substantial financial losses to such investors.
“It is hereby clarified that there was no technical glitch at BSE Clearing House (ICCL) on June 4th. Prima Facie, there was a lag in receiving details of credit /payments from payments aggregator(s) / bank(s) for a few customers which led to the delayed NAV,” BSE said in a statement.
The clarification came after several broking platforms alleged BSE for a glitch in the mutual fund system of the exchange on June 4, which led the orders to go through the next day (June 5), when the equity markets had partially recouped some of their losses.
Stock Market Crash
Stock market crashed on June 4 the day of Lok Sabha election results in which Rs 31 lakh crore of investors’ wealth was wiped out.
Following the exit poll prediction of a resounding victory of the BJP-led NDA, BSE benchmark Sensex shot up on Monday (June 3) by 2,507 points, or 3.4 per cent, to settle at a new closing peak of 76,469.
However, a day later on Tuesday (June 4), the equity markets witnessed a bloodbath, with the Sensex tanking 4,390 points, or 6 per cent, to settle at 72,079.
This was the worst single-day fall in four years.
Meanwhile, benchmark equity indices Sensex and Nifty climbed over 2 per cent to settle at record closing high levels on Friday after the Reserve Bank of India (RBI) revised upwards the GDP growth projection to 7.2 per cent for 2024-25 from 7 per cent earlier.
The 30-share BSE Sensex jumped 1,720.8 points, or 2.29 per cent, to hit a new record peak of 76,795.31 in day trade. The benchmark ended at 76,693.36, up 1,618.85 points, or 2.16 per cent.
The NSE Nifty climbed 498.8 points, or 2.18 per cent, to 23,320.20 during the day and is just 18.5 points from hitting its record high level. It settled with a jump of 468.75 points, or 2.05 per cent, at 23,290.15.
Regaining the 75,000 level, the BSE benchmark jumped 692.27 points, or 0.93 per cent, to settle at 75,074.51 on Thursday.
The Nifty climbed 201.05 points, or 0.89 per cent, to 22,821.40.
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