Internet and Smartphones have changed the stock broking industry completely. Every broker has a trading app through which it facilitates trading. Traders install these apps on their smartphones and execute trades.

But these apps are not perfect and like any other software or app they are prone to technical glitches. So what happens when a glitch occurs? Obviously, traders suffer losses. But who should be held responsible for their loss or whom should they ask for remedy?

Should they raise their issue to the broker, SEBI or Exchange? We delved into laws made by SEBI. Exchanges and other bodies and tried to find answers. To our shock, a trader can not hold a broker responsible for a loss due to a tech glitch in his trading app.

In fact, when a trader signs an onboarding contract broker, it explicitly mentions that it can not provide trading services round the clock and a trader can not raise a claim of a refund even in courts of law.

The worst thing is there is no mechanism to protect a trader’s interest in case a technical glitch occurs in its trading app.

We have collated various trading app glitch incidents and actions taken by regulatory bodies in the aftermath and what is the way forward.