On may 8th 2017, i was trading in the nse using the technical platform (Kite) provided by zerodha
. Using the bracket order facility provided by the broker, i went short on idea cellular
for 70000 shares at 81.90, later i changed it to 81.85. The request to change the value of the sell order to 81.85 made the order in a "pending modification" state.
I tried to cancel the order but nothing
happened, i contacted the broker's cochin branch and requested to cancel the order. They told me that the order was modified to 81.85. But when i asked them to cancel the bracket order, they told me to logout of the platform and login again and repeat the cancellation request.
I logged out and logged in again to the platform, now the order was modified in the trading platform to 81.85, i tried to cancel the order and i got an error message showing "message failure". After few seconds, the order got executed in the market and there was a huge up move in the market and within few minutes, i lost 100000 rupees. Although i had placed a stop loss order, it didn't work.
I filed a complaint with the nse, they held a meeting at their cochin office with the broker (Zerodha
). After hearing both side, nse said that since it was stated in the blog of the broker that bracket orders can't be cancelled by the dealing desk of the broker and only by the client the broker is excused of the loss made by the client.
Nse made a decision on the fact that there was statement on the blog of the broker about the modification/cancellation of the bracket orders!
Anyone knows that unless it was stated in the legal documents signed by the client during the account creation process, there is no validity to the statement made by the nse and the broker about bracket orders. So it is clear as a day that nse was partial to the broker on this incident.
Later i found out that the statement on the blog of the broker (Zerodha
) about bracket orders was made at the time of meeting held with broker at nse on june 2017. But the broker (Zerodha
) claimed that it was on the blog since 2014! So it is clear that the broker was cheating the client by fabricating the evidence. And the nse made a decision on a false or fabricated evidence!
Later i filed for arbitration with the nse, the arbitrator was partial to the broker stating that the order got executed at the time of call made to the broker by the client and the broker should be excused.
Anyone can see that both nse and zerodha
are playing along to cheat the client because both nse and zerodha
are responsible for the loss made by the client.
Since the broker (Zerodha
) states that the technical issue faced by the broker was due to the technical issues in the nse server lease line to the broker server both nse and zerodha
are responsible here.
Client id - ps8501, date of issue - may 8 2017.
I humbly request the government to resolve this issue and take action against both nse and zerodha
Zerodha customer support has been notified about the posted complaint.