ICICI Direct has a mechanism to lock qty to avoid selling. Customer uses that feature to lock stocks for LT. But the portfolio report still shows all qty, which is not appropriate. Atleast they have a mechanism to lock qty.
Remember how Yes Bank was locked for sale. Why can’t you think on those lines where you give customer an option to allocate some portion of the holding qty for LT. So the customer sees only the ST qty in kite that can be traded. In kite you show the T+1 qty as well. Just saying.
If you can implement the above mechanism of allocating qty for LT, then going further, you can have 3 reports, for total qty, for LT qty, and for the balance qty for each scrip. You can call these reports as portfolio. That’s it.
Only if @nithin understood that long term investors like us could start exploring short term features like intraday and derivatives, only if he allows us to seggregate it and keep them separate. After all it will generate more revenue for the company.
You can’t segregate a portfolio like that for taxation. The ideal way is to move long-term holdings to a secondary demat account. This is on our list of things to do - open a secondary demat where you can hold long term holdings.
Stumbled upon this thread looking for the same feature.
@nithin
Is it possible to have a feature to create like a Portfolio list 1/2/3 in the holdings tab in kite app and put the holdings into different lists according to our need (we can rename the lists as long term/short term/swing etc)? You can make one list as the default list from where we can then shift it to another list of our choosing. You can put a condition that allows one scrip to only be part of one of the lists, so there’s no confusion about the FIFO methodology. This would potentially solve the issue for trades/holdings in separate stocks at least. And is basically just a technology feature of the app and doesn’t hamper with the actual workings of the buying/selling/exchanges etc.
give the option to hide any particular scrip that is already in the portfolio from the holdings tab in the Kite app. This will create essentially two separate lists (viewable/hidden) and help bifurcate holdings according to individual need. eg. - one can hide their long term scrips and keep only swing trade scrips in the holdings tab and the math (portfolio value/loss/profit) on top of the holdings tab stays according to only the viewable scrips.
and to avoid confusion/provide easy access of the hidden scrips there can be a button there in the holdings tab itself, something like - HIDDEN (4), where 4 represents the number of hidden scrips. on tapping this button we get to view all the scrips we’ve hidden and the math on top of this Hidden tab can reflect value/loss/profit of this hidden list only.
the buy/sell etc. functionality can remain the same as is after tapping on the scrip for both hidden and viewable entities. and one scrip is allowed to only be in hidden or viewable lists (no break ups). this will also just be a technology feature and wont mess with FIFO/exchange etc etc.
im not sure how workable this is. but just my two cents. really want this bifurcation feature badly.
This is available on icici direct… but, I don’t use them for variety of other reasons… but can’t imagine a brank broker having better features than zerodha.
Apologies, this was delayed. We’re now internally testing opening a secondary demat account and a provision to transfer shares between demat accounts. This feature will be available for our users in a few weeks.
Not sure why you are not implementing simpler solution offered by users, handling from a user-data/tag/UI perspective; rather than multiple demat account
Nevertheless, Thanks for trying to make this work.
Actually,the reason to segregate is not for taxation reasons, but it is only to keep the view clean. Say, for eg. I might have 100 stocks of RIL, of which I want to keep 50 for LT, while remaining 50 for ST. So the user just wants to see 50 qty in his ST portfolio page, so that he/she is not tempted to sell. In case the user wants to sell all 100, he/she would go to the “ALL” portfolio page and sell all of 100 qty. Like I mentioned earlier, this feature can be implemented in many ways, but the noteworthy one is the one I see in ICICI Direct, where I can “make available” only 50 qty to trade on the “Allocation” page. Another way was the way you blocked Yes Bank shares under instructions from SEBI/RBI. Many other solutions have been discussed in this thread by other users. Request you to keep it simple than adding on more demat account to manage
Sounds like because, such an user interface
doesn’t match the legally followed behavior of
enforced FIFO sell of untracked/pooled units of a scrip in a deamt account.
How does this work in practice though?
Even if one makes available some units for short-term trading,
when sold they will end-up being taxed as long-term capital-gains/losses on them due to enforced FIFO,
if the earliest units were bought long ago that they were held for more than the threshold period). right?
Isn’t the UI misleading/confusing then? (or did i misunderstand how this UI works)
When we say ST, please do not treat it as “ST” literally. You can call it “abc” or “xyz”. Nothing to do with taxation or FIFO; but only to segregate qty into separate buckets (portfolio)
This feature of allocating qty for trade is indeed available in ICICI Direct. Screenshot attached. ICICI Direct could have gone further and provided separate portfolio reports over the allocated/deallocated qty, and that is where we are looking at new age companies like Zerodha to improvise.
I can understand that everyone here is talking about ST/LT, hence the reasoning about taxation, FIFO, etc comes to your mind.
Just a question to @nithin and his team. Can’t we have a feature which lets you add certain tags to your holdings (particular stocks) and then filter your holdings as per the tags? The workaround can help address the requirement for most.
Welcome to the community !!
I think this feature exists in console, but it won’t suffice for this use case, as we may want to segregate qty as well, Eg. 50% in a particular portfolio while remaining in another one.
