Angel One Takes ₹19 Cr Hit On MCX Trading Disruption

Domestic brokerage Angel One has taken a Rs.19.2 crore hit following last year's trading disruption at Multi Commodity Exchange of India (MCX), as it moved to compensate clients impacted by the outage.

The stock broker has shown the hit as one-time reimbursement to the clients in the investor presentation for the fourth quarter of FY2025-26, while sources confirmed that the compensation was on account of technical glitch at MCX.

The brokerage said the losses were borne as a one-time goodwill gesture to safeguard client relationships, even though the root cause of the issue lay with the exchange.

'Angel encountered a technical issue originating at the Market Infrastructure Institution (MII) level, which led to an abnormal trading environment for our clients. While the root cause was external and there was no obligation on us, we proactively supported affected clients through a one-time goodwill gesture,' said Bhavin Parekh, head-operations, risk and surveillance at Angel One, during the company's fourth-quarter earnings call, without confirming that the glitch was at MCX.

Sources indicated that clients had incurred losses during the disruption and held the brokerage responsible. While the issue aroused due to the outage at MCX, Angel One subsequently decided to absorb the impact on its books to prevent any reputational damage.

'We are continuing to work with the MII on this and looking to resolve it,' said Parekh.

While MCX had suffered a major four-hour outage in October last year due to technical glitch, industry players and people with direct knowledge said that that minor technical issues continue to impact trading experience and activity at the exchange.

"Traders continue to get impacted due to the technical issues at the exchange with several instances across the previous few months. This needs to be resolved by the exchange," said an industry player, seeking anonymity.

On October 28, 2025, the exchange had to shift operations to its disaster recovery (DR) site, with trading resuming only at 1:25 pm.

Several brokers had flagged difficulties in executing trades even after the shift to the DR site.

The regulator, Securities and Exchange Board of India (Sebi), had sought details from the exchange following the incident.

-- Khusboo Tiwari, Business Standard