Adding discrepancy entries for corporate actions of stock bought via old broker's account which is now transferred to Zerodha

I had my old demat account with say firm X between 2013 to 2022. In this account let’s say I have the following transactions for stock ABC

Bonus scenario

# Tr. Type Date Qty Price
1 BUY 13-Jun-2013 2 1342.75
2 BUY 18-Jun-2013 3 1308.97
3 BUY 25-Jun-2013 5 1262.67
4 BUY 6-Aug-2013 5 1275.73
5 BUY 22-Aug-2013 4 1230.53
6 BUY 28-Oct-2013 5 1230.89
7 BONUS(1:1) 30-Sep-2015 24 0
8 BUY 2-Aug-2017 7 1044.83
Total quantity 55

I closed the above account and transferred it to Zerodha recently where it shows 55 Qty of ABC as a discrepancy.

My query is regarding adding discrepancy data in Zerodha.

  1. Do I add all transactions (including bonus) #1-8 from the above table in Zerodha’s discrepancy correction page or should I not add transaction no. 7 as Zerodha support mentioned the following statement in its support query which confused me

Kindly do not enter any corporate action price and details as they will be adjusted accordingly so you will need to enter only the buy price, quantity & the date on which you have bought. Any corporate action adjustment will be done accordingly.

  1. Does the above response from Zerodha support mean Zerodha can auto-populate my past bonus quantities by looking at my transaction dates and fetching bonuses based on corporate action dates? So, do I have to enter only BUY transactions and not BONUS / SPLIT transactions?

Split scenario

How do I add discrepancy data for the following trades?

# Tr. Type Date Qty Price
1 B 5-Aug-2013 5 625.2
2 B 6-Aug-2013 3 609.63
3 B 12-Aug-2013 5 602.7
4 B 24-Aug-2015 5 1034.71
5 B 11-Feb-2016 2 1012.59
6 B 29-Feb-2016 5 949.33
7 SPLIT 21-Sep-2019 25 0
8 B 28-Jul-2020 10 1085
9 B 3-Aug-2020 10 1000
Total quantity 70

Do I need to adjust the price values for transactions 1-6 based on the SPLIT event at #7 or can I enter all transactions from 1-9 as it is ?

Thanks

Hi @ShubhS9

Can anyone help me with this issue?

I am confused between the following 2 statements and it’s unclear what data the customer has to enter and what data Zerodha will fetch automatically.

If a stock is undergoing a corporate action like a bonus or split, the buy average will have to be adjusted. The buy average is automatically updated within a few days from the record date. - (Reference)

Kindly do not enter any corporate action price and details as they will be adjusted accordingly so you will need to enter only the buy price, quantity & the date on which you have bought. Any corporate action adjustment will be done accordingly - Mentioned by Zerodha support executive

Hi @bhavesh.f, if you’ve opened Zerodha account after the corporate action ex-date, the price for bonus and split will not be adjusted and you will have to add the details manually.

For bonus, you will have to add the details including the bonus quantity. You will have to add actual price for 24 shares bought before the bonus, the entry for 24 bonus shares will be at 0 price and so on for the 7 shares bought after bonus issue.

For split also, values won’t be adjusted automatically if account was opened after the ex-date. You will have to enter values for the entire transferred quantity with adjusted price as per the split ratio. For example, if the split ratio was 10:1, the price you will have to enter is Rs. 100 if shares were bought at 1000.

1 Like

Thank you so much for the quick reply. That helps a lot in clearing my doubt :+1:

@ShubhS9 : Since we are dividing the price by 10 in 10:1 split, should we also multiply their quantities by 10 ?

No, you don’t have to multiply the quantity. The number of shares you’ve transferred will already be including split shares.

Related Q:
How to find/enter values for discrepancy due to “Demerger”?
How to find the ‘adjusted’ buy value of the parent company on the buy date?
How to find the value of the demerged company on the alloted date?
I transferred shares of Samvardhana Motherson International Ltd to Zerodha.
Bought on three separate days.
Now, after I bought Motherson Sumi Wiring was demerged from Samvardhana.
I have both the shares. This was transferred to Zerodha and it is showing as Discrepancy.

Found the answer:
Note: Demerged Company = The Original Parent Company
Resulting Company = The Spinoff Business

The buy cost of the Parent company has to be adjusted according to percentage communicated by them. It will available in NSE or BSE. (Eg: For Motherson https://www.bseindia.com/xml-data/corpfiling/AttachHis/85475845-2fbd-4c92-9649-31ba693b0325.pdf)
The cost of Resulting company will be the percetage of original buy cost of parent company - again, as mentioned in the communication.

The buy date of the resulting company will be the buy date of the Parent/Demerged company (and not the allocation date).

As for Bonus Shares:
As mentioned earlier in the thread, enter data with buy price as “Zero” (if Zerodha account opening date is after Bonus allotment.)

Date of buy will be Record Date for Bonus allotment (and not the date when one receives it in one’s demat account.) (This record date will be available in the communication sent and/or NSE/BSE site.)

1 Like