Mutual Fund Investors :The matter is getting bigger after the mutual fund platform was accused of delaying the unit allotment. Some investors have made such allegations on social media that they had invested money on June 4 to buy cheap units of mutual funds, but they got the NAV of June 5. Now this matter is being seen as a deliberate wrongdoing by the investment platform with the investors. Such complaints have also reached SEBI, although there has been no clarity on this from the market regulator. At present, many investors have demanded compensation.
what is the whole matter
In fact, on Tuesday, June 4, the counting day, there was a huge fall in the stock market. The Sensex fell by more than 6000 points intraday. During that time, the units of equity mutual funds also became cheaper. In such a situation, investors invested money on June 4 to buy cheap units. But the allegation is that even after investing before the cut-off time, they got the NAV of June 5 and the market had recovered to a great extent on June 5. In such a situation, they did not get as cheap units as they should have. It is believed that many investors wishing to invest in mutual fund (MF) schemes amid the sell-off in the market were left in limbo as online mutual fund investment platforms failed to execute transactions on time.
Retail investors suffered losses
According to the allegation, retail investors had invested money in the mutual fund market for cheaper units. But they got the NAV (Allotment of NAV) of 5 June. On 5 June, the market saw a considerable recovery. In such a situation, the cheaper units that they should have got as per June 4 did not happen and they got units as per June 5.
whose fault
According to the allegations, there could be a technical fault on the part of BSE exchange as well. It is also believed that there might have been a delay in the payment received by BSE through UPI channel. However, investors felt that if the money was deducted from their account before the cut-off, they should get the units at the price of 4th June. Currently, SEBI is engaged in gathering information about this.
Some transactions were not processed on time
According to media reports, according to officials of discount brokerage firms Groww and Zerodha, many transactions could not be processed for net asset value (NAV) on the same day even if they were executed before the cut-off deadline.
These investors were allotted the higher NAV of the next day, leading to expected losses. On Wednesday, June 5, the NAV of equity MFs rose between 2 per cent and 5 per cent as equity markets bounced back from Tuesday’s lows.
Technical issue with a payment aggregator
According to media reports, Zerodha’s mutual fund investment platform Coin said that the transaction was delayed due to problems with one of its payment aggregators. We work with many payment aggregators and one of them faced a problem on Tuesday. Even after reporting the problem on time, it could not be fixed. Nilesh Verma, Product Head and Assistant Vice President (AVP), Coin by Zerodha, said that since we work with many payment aggregators, only a small percentage of transactions were affected.