Dividends not received on pledged liquid bees

#1

I have a few liquid bees and i pledged them so that i can use it as collateral for F&O but the dividend i am receiving at the end of each month is too less . Assuming a 6 % annualized return, i am supposed to get 0.5 Unit for 100 units of Liquid bees. But i see only 0.1~0.2 as dividend each month( I have
pledged more than 100 on https://console.zerodha.com/portfolio/holdings). How should the calculation be done and if there is an issue who should i complain to.

On pledged liquid bees am i eligible for the monthly dividend?

3 Likes
#2

Me, too have similar query.
more than 1100 units of liquidbees for last6 months, still recieved only 23 units credited

#3

Hey @hittudiv,

Since the returns in Liquid ETFs are in form of dividends they are subject to a Dividend Distribution Tax of 28.84 %. This means that the returns from Liquid ETFs are tax-free.

You can check out the dividend calculator to calculate your effective returns.

#4

Hi, i have already checked using the dividend calculator. But the dividends i received are less than 10% of what the calculator shows. Possible to check account once? DM0767

#5

Also the calculation is correct if i only consider unpledged liquid bees. For the pled ones, i Didint receive the dividend.

#6

Hey @hittudiv,

Dividends for pledged liquid bees will be credited to your account once a month, generally in the last week of the month. However, please raise a ticket here and our support rep will explain in detail based on account specific information.

#7

I have the same issue, not receiving dividends for the pledged units.

#8

Hi, i raised multiple tickets and i waited for more than 6 months.

1st time support ticket said they will take around 2 weeks to resolve this issue.

42%20AM

and 2nd time they asked for more time. both the tickets are more than 2 months old now.

50%20AM

Please tell me how to proceed… I am losing out on the dividend part. This is not fair from zerodha!!! looks like lot of other people are having same issue.!

#9

Also please check the details before you comment because i have calculated thoroughly what i should receive according to the dividends declared and I am receiving dividends ONLY for the bees that are NOT pledged. But Zerodha is supposed to transfer dividends from my pledged holdings to my account.

Account ID: DM0767

#10

@hittudiv - Can you provide the latest update on this issue or the situation that you faced in the past ? I have raised a similar kind of service request (to know before hand whether I will be eligible to get dividend on the pledged liquidbees quantity) but the response doesn’t clarifies well. It says all the stock pledges are eligible for dividends / interests but nothing was mentioned clearly on the liquidbees part as it’s not a stock but an ETF. Upon asking more detailed questions this “Tradingqna” link was provided to me suggesting me to join the forum instead of answering my query in detail.

Awaiting for reply…

#11

No response from zerodha even when multiple people are facing this issue. very bad. I had to unpledge my liquidbees because of this. @nithin

#12

Liquidbees dividends are paid out once every 28 days, we take another 2 days or so to reconcile and payout the dividends to clients who have pledged. Is your query on the delay in receiving dividends or on receiving lesser no. of units than you anticipated?

If you think you are receiving lesser than what you should, it could be because you’re computing it incorrectly. The dividend paid out for units held in a non-individual account is lower than the dividend paid if the same units were held in an individual account.

I’ve enclosed 2 screenshots below:

a) Dividend for 100 units for units held in a non-individual account

image

b) Dividend for 100 units for units held in an individual account
image

When you pledge units, they’re held with Zerodha whose account is of type ‘non-individual’ and hence you receive lower credits.

#13

What is the difference between individual account and non individual account?
Why non individul account receive less ?
If i as an individual pledge with zerodha . Then why should i receive less ?
And if i receive less after pledge then that is a huge big loss in receiving dividend ? Then in this case should i avoid pleding ?
Or do you suggest any best alternative wherein we pledge and get lowest haircut and no loss in dividends too ?

Awaiting for the reply

#14

I think it’s because of the additional surcharges applicable at the time of paying dividends to non individual clients. @faisr can explain better.

#15

BUT mine is individual client account . just pledging for the margin leverage . then how can they count my account as non individual while paying the dividend ?

#16

The fund pays dividend where the units are held, when you pledge your stocks for margin, they are held in a non individual account and hence the broker receives credit of the units which he reconciles and then passes it on to the client. There’s nothing that can be done about this.

#17

then is it wise to pledge the liquidbees for margin leverage and suffer loss of dividend pay ?
do we have any better alternatives then ?
and what if the client forget to take the dividend from the broker and the broker intentionally forgets to pass on the dividend to the client ?
pls reply …

#18

The difference is marginal, for an investment of 10 lacs in liquid funds over a one year period made through an individual’s account will yield 0.25% higher when done through a non individual account. If you feel you’ll make more money pledging and using the margins in F&O, you can do so, else don’t use the pledge facility.

That’s between the broker and the client, a client has to be aware of what’s due to him and rightfully claim it. If your broker isn’t passing on the benefit intentionally, change your broker.

#19

@HSL There is a higher DDT applicable for dividends paid out in a non-equity fund or ETF for that matter if the unit holder is a non-individual client. I have shared the screenshots of a tax reckoner from Franklin India for your reference.

For individual account, the DDT is calculated as 25% + [(12% * 25) + (4%*25)] = 29% while for a corporate account it is calculated as 30% + [(12%*30) + (4%*30)] = 34.9%

Since the units are held in our account once you have pledged the units thus the dividends paid out will be lesser compared to an individual account. If this marginal difference is a big concern then you can opt to invest in the growth option of liquid funds through COIN and pledge the units for margin. It works the same as for liquid bees. You can check out this link with the details and for approved list of liquid funds that we allowed to pledge.

1 Like
#20

In this case will we have to bring 50 percent cash margin of it would be treated As cash equivalents