BSE Star MF glitch disrupts thousands of mutual fund orders

God Damn It …

Invested in few funds today owning to market crash via Zerodha and faced this ! Only good part is its entire BSE Star MF level outage and is not the boo boo of just Zerodha . It appears outage happened between 1-3 PM

I still do not get why Zerodha do not send realtime orders ! Why they collect all orders one by one and place it at bulk at exactly 1:30 ! Why cant they place the orders at realtime @nithin @siva any reasons why ? See if you had placed orders in real time, this could have been avoided

Hey @rupeshmandal See this . Hope you have not invested today :stuck_out_tongue:

@Bhuvan Can you.

@dexter007 I had already filed a complaint against both Zerodha and BSE Star MF at SEBI SCORES last week. The case is under process. Let’s wait for the outcome.

Yes, I do agree that Zerodha should not pass orders to BSE Star MF in bulk and instead pass on the orders as they come by. It would reduce load. Kuvera does the same pasing on orders to BSE Star MF as and when they come by. Sending bulk orders by Zerodha at 1:30 is a bad system design.

Also, BSE Star MF accepts buy orders till 2:30 pm for same day NAV and redemption orders till 3 pm. On Kuvera you can place buy orders till 2:30 pm for same day NAV and place a sell order till 3 pm. This is how it should function.

If Zerodha cares for the retail investors it should do as Kuvera is doing. 2:30 pm for buy orders and 3 pm for sell orders. Instead of brute force cut-off at 1:30 pm for both buy and sell.

I think finally all these platforms have to invest in creating their own standalone payment routes to AMCs like Paytm and ET Money has done. There is no escape from it. They have to break the monopoly of BSE Star MF. And create an alternative solution that others can also use to generate revenue and get returns of investments.

Until then such problems would reside. I hope SEBI comes with a solution keeping retail investors in mind.

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We have moved away from placing all orders at 1.30 pm some time back. It is placed through the day. Only the last batch of orders collected for an hour before 1.30 pm were affected (around 15% of all orders).

Placing orders in real-time is an issue due to their APIs. We are looking at figuring if we can have the NSE MF system as a backup. Competition should also mean that everyone is forced to make their systems better.

Edit: My bad. Just spoke @faisr there was a miscommunication (I misunderstood). All SIP orders went through and none of the lumpsum did as they are placed at 1.30 pm. All SIPs are placed earlier in the day. We are working on sending lumpsum through APIs real time to avoid this risk we carry with the exchange platform failing towards the close.

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@nithin, Similar to BSE Star MF, NSE NMF platform also restricts retail investors to place buy orders latest by 2:30 pm for same day NAV i.e. 30 minutes prior to SEBI guidelines. When I asked them why so, below is their response.

It looks like cartel behavior. Both BSE Star and NSE are doing the same thing. Instead of upgrading their technology architecture, so as to accommodate real-time orders till 3 pm as per SEBI guidelines, they are taking retail investors for a ride, finding an easy escape to forcefully advance the cut-off.

Zerodha being the largest broker, can’t it do something about it? Can’t it fight for the interest of retail investors? Or invest in an alternative system as a competition to BSE Star MF to place MF orders seamlessly and let other platforms also use it and generate revenue from it to make up for the investments. Someone has to do something about it.

What is the last batch timing? I paced my MF order through Coin yesterday at 11:24 am but it’s not completed due to the glitch.

On this Reddit thread the OP has mentioned that he placed an order on Zerodha Coin at 10:47 am yet his order failed.

Looks like only God knows. :thinking:

Why do we need to use these platforms? One can simply visit an AMC site and place an order along with payment via NetBanking/UPI even at 2:59 PM and will receive that day’s NAV.

@nithin I have placed on order on Sunday itself and another one way before 12:30 . Its wrong to say that many orders did not got impacted. My both orders got impacted ! If you are sure that its the outage only for orders placed after 12:30 , I will create a ticket and ask why my order got impacted.

Also , I do not think Zerodha input orders periodically. I have tested this. I can delete the order before 1:30 anytime, no way you would have placed the order before that or else you would not have allowed deletion ! + Order will be in draft status till 1:30. Only after 1:30 orders cannot be modified meaning it is sent to Start MF

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Only around 15% of our orders didn’t go through. @faisr can you check on this.

@dexter007 maybe you can message the ticket number to @faisr

Done sir ! Created ticket with attachment proof + messaged Faisr.

My bad. Just spoke @faisr there was a miscommunication (I misunderstood). All SIP orders went through and none of the lumpsum did as they are placed at 1.30 pm. All SIPs are placed earlier in the day. We are working on sending lumpsum through APIs real time to avoid this risk we carry with the exchange platform failing towards the close.

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ah okay :frowning:
No issues then - All orders got impacted, Hopefully it will go through today. Bank nifty recovered 2% . So sort of lost 2% gains but I guess these happen rarely.
Thanks for your response - yes we need to move to hourly order batch. I am okay if you do not let me modify my order once placed - But place it before 1 AM please ! More startups are coming using Star MF as backed so traffic will just grow and we will face this often

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Is there any extra benifits to sticking with Zerodha Coin than other platforms?

Infact, Upstox also providing Mutual Fund service and their cutoff time is as per SEBI guidelines. But their user interface is not good at all.

Thinking re-materialize my mutual funds. And keep a safe distance from Coin.

  1. No Redemption DP charges
  2. Easy pledge options for margins
  3. I guess in future, we will get switch option across fund houses in coin
  4. Nice taxation reports

Advantages of Mutual Funds with Coin:

  1. Your Stocks and mutual funds remain with one platform.
  2. One Tax P&L is generated and it helps in tax harvesting etc decision-making.
  3. Pledge MF for margin
  4. Tomorrow, if you want to move out of Zerodha and go to another platform, you simply close your Demat & Trading account with Zerodha using DIS slip method and everything gets transferred to the new platform (Demat-based).

Disadvantages of Mutual fund with Coin:

  1. Bad UI
  2. Mobile and Desktop interfaces are different.
  3. Brute-force cut-off at 1:30 (even for sell orders. On Kuvera 3 pm cut-off for sell orders). Randomly on some days cut-off is changed to 1 pm. Inconsistent.
  4. Zero reports, insights, and portfolio analysis.
  5. Many basic functionalities like STP etc are not available.
  6. Frequency of platform upgradation, addition of features is too slow. People are waiting for more than 2 years.
  7. No instant withdrawal. The redemption amount doesn’t go to your bank account directly.
  8. Doesn’t generate revenue for Zerodha. Business-wise a loss-making vertical. Every sell order costs Zerodha Rs 5.5+GST. Currently, Coin is a parasite leeching onto other profit-making verticals of Zerodha. Because of peer pressure, and because other platforms are free, it has to provide Coin for free, else people would just stop using it. Hence maybe it is treated as a bast**d child with the least amount of focus paid to make it any better.

An insight to ponder upon:
Most of the coin users import their CAS to Kuvera, INDmoney, etc app to analyze their portfolio. Those 3rd party apps must be happy and thanking Coin that doesn’t provide good reporting so it leads users to use their service. The more delay Zerodha makes in improving Coin, the better for competition.

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Hello @rupeshmandal the disadvantages list is longer than the advantages list.

Don’t count the number of items. Some should have much more weightages than others

Maybe some weightage that these posts are allowed to be written and published on a platform run by the business? Can’t think of many around the world who would allow it. :wink:

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