Zerodha glitch causes significant losses for users, company reacts

Several users reported sizable financial losses while trading on Zerodha's Kite platform due to a technical glitch on Friday. In the past, Zerodha has witnessed technical glitches and this time the brokerage firm identified the problem as a connectivity issue with the Bombay Stock Exchange (BSE).

"Some of our users may be seeing orders in the ‘Open Pending' state for BSE F&O orders. This issue is across brokers. We are working with BSE to update the status of these orders," Zerodha explained in a post on X, acknowledging the users' complaints.

Later, the firm announced that the issue had been resolved by the BSE, aiming to reassure affected traders.

However, the impact was significant for many users. One trader reported losing over Rs 15 lakh, stating, "Orders were pending from 10:55 am, and I was unable to cancel or modify them. At 11:24 am, all orders were executed at the previously pending price, forcing me to square them off at the current price, resulting in a loss of over Rs 15 lakh across two accounts."

Another user shared a similar experience, "I was supposed to have a Rs 92K profit but could not execute because Zerodha was stuck. When executed, I ended up with a Rs 19K loss. @zerodhaonline, give me back my money as you are solely responsible for this."

Zerodha's prompt response and resolution of the issue with BSE are crucial, but the incident has left many traders questioning the reliability of the platform.