BSE Clarifies Payment Lag as Cause of NAV Delay Amid Market Chaos

Leading stock exchange BSE clarified that a payment lag from banks was the cause of the delay in assigning NAV to investors buying mutual funds on June 4, not a technical glitch. This came after investors complained of financial losses due to the delayed NAV assignment.

Leading stock exchange BSE on Friday clarified that a lag in receiving payments from banks led to the delay in assigning Net Asset Value (NAV) to investors who purchased mutual funds on June 4. According to BSE, there was no technical glitch at its end.

Many investors took to social media to complain about their inability to square off their positions. Investors who bought mutual funds before the cut-off time received NAV for June 5 instead of June 4, resulting in significant financial losses.

In a statement, BSE explained, ''It is hereby clarified that there was no technical glitch at BSE Clearing House (ICCL) on June 4th. Prima Facie, there was a lag in receiving details of credit/payments from payments aggregator(s)/bank(s) for a few customers which led to the delayed NAV.''

This clarification follows accusations by several broking platforms that a BSE system glitch on June 4 caused orders to be processed the next day when equity markets had partially recovered some losses.

The stock market plummeted on June 4, coinciding with Lok Sabha election results, which saw Rs 31 lakh crore of investor wealth being wiped out. Following exit poll predictions of a BJP-led NDA victory, the BSE Sensex had surged by 2,507 points on June 3. However, on June 4, the index dropped by 4,390 points, marking the worst single-day fall in four years. It recovered some losses on June 5, with a rise of over 3 per cent.