Kotak Neo app was plagued by technical glitches throughout the day, with many investors and traders taking to Twitter to vent their anger on Monday. Users said they were unable to place orders, or fulfill positions because the app was down for the entire day.
Monday at 11:40 am, Kotak Securities took to the micro-blogging site to provide updates. “We are currently facing issues with the NSE adapter and NSE orders at Kotak Neo. Trades are working fine at BSE. The team is actively working to resolve the issue. Inconvenience caused to us Sorry for,” it said.
However, even at 9:15 pm, Kotak Securities responded to a user that the glitches persist. “Hello, we are extremely sorry for this. We completely understand your point and the team is working on it. We are trying to make sure this doesn’t happen again.”
Tagging Kotak Securities, a Twitter user wrote, “This must be the first time in the history of Indian Stock Exchange that a broker is down for the whole day. Very poor service.”
Another distressed user of the app said, “Anyone facing issue placing orders at Kotak? This is happening for the third time in a row.”
Another user said, “2022 Worst Broker award goes to @kotaksecurities.”
An options trader said that the prices of the options were not updating for 45 minutes. Another option trader said that he was not able to book profits on Monday and faced a similar situation on Thursday.
A user from Kotak Neo asked, “How can Kotak release a product with so many defects and take no accountability?”
Several traders also posted screenshots of losses as they were unable to liquidate their positions in time.
Another user said, “This (app glitch) is the height of negligence and unprofessionalism.”
Last month, the market regulator directed stock exchanges to impose “financial disincentives” on stock brokers for technical glitches on their part, amid incidents of glitches by brokers affecting the overall trading system.
In addition, stock brokers will have to inform the exchanges within one hour of any glitch in their trading system as well as submit a preliminary incident report within a day.
As part of tightening regulations, SEBI also said that exchanges should disseminate on their websites technical glitches in the trading systems of stock brokers as well as Root Cause Analysis (RCA) of such issues. The Securities and Exchange Board of India (SEBI) said in a circular that the new framework will be effective from April 1, 2023.
