Yeah but I don’t wanna do that. When can zerodha rectify this. You guys are the largest broker house , you should provide this as a default not ask your customers to shift accounts.
They can’t rectify this unless regulations change. You can use other brokers through who haven’t hit this limit yet.
This isn’t shifting accounts; the trading experience remains the same. There is a restriction that one broker can’t be more than 15% of total open interest, and hence this restriction. No way to rectify this. When you use a custody account, the OI is not on the broker but on the custodian.
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Interest statement for October shows that interest on negative cash is calculated by taking 104% of margin required by exchange and not by using exact margin required by exchange on EOD basis.
Need to clear this anomaly in console backend.
Hi @ashok_bansal The interest posted have been deleted from the Console ledger and will post the revised one considering only exchange stipulated margin in 2-3 days. Apologies for inconvenience.
Being with Zerodha for some time now, I understand this must be an honest mistake due to oversight.
However @nithin, I must admit this is how a typical corporate fraud might look like.
Just look at the chronological sequence of events:
- Upfront margin penalty can’t be passed on to traders: Sebi guidelines
- Zerodha starts blocking 4% more margin than what is required by exchanges: fair enough, nothing illegal
- Zerodha starts squaring off positions as available margins go into even slight negative territory (might still be sufficient to meet exchange requirements, just short of zerodha’s) : things start becoming fishy. Conflict of interest involved as auto square off means more brokerage revenue.
- Zerodha now charging interest on negative balances (basis their definition), rather than on actual numbers: fraud
I understand that zerodha takes a lot of pride in its lean structure, but to carry out such projects, you need a proper project management team, and end to end planning time.
A trivial feature request takes you guys years to deliver, but when it comes to an issue that’s a threat to the bottom line, you carry out the entire overhauling project overnight!
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Yesterday one of my account’s margin went into slight negative (about Rs 300). I had a limit order in order book yet to be executed. I cancelled that order immediately. I made subsequent trades only after that. Even then I have been charged Rs. 40 brokerage. Now I cannot go through hassle of seeking resolution through raising ticket for refund of Rs. 20!!!. Their customer support will copy paste “template replies” which is of no use.
Earlier it was very easy to verify brokerage charged by multiplying Rs. 20 with number of unique Order IDs. But now due to this negative margin provisions, it CANNOT be verified whether brokerage charged is right or not. You guys please keep a tab on brokerage being charged especially in cases of negative margins.
Trust is very fragile thing. It takes years to be built and minutes to be shattered.
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Please note, our RMS don’t squreoff if the shortfall is to the extent of additional 4%.
This was a miss and we have acknowledged in my previous replies. It’s a system generated process and scheduled to post entries on ledger, we have changed the logic and interest would only be charged if there is shortfall in exchange stipulated margin and not on additionally charged.
Hi @jhakkastrader, sorry to hear this. Could you please DM me your Client ID? Will have this checked.
This isn’t happening. The idea of charging a higher margin is to avoid squareoffs immediately.
This was a miss, and we will be reversing for everyone where it was charged based on higher margins blocked.
Edit: Ah damn, didn’t see @Ananth’s post above. 
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This might be correct, but as far as my experience is concerned, I got a margin call and within 5 mins, one of my positions was squared! I’m not a day trader, but even the swiftest trader here might not have been able to add funds in that short duration.
I know this, as mentioned at the beginning of my previous reply. I also know that if something like this gets highlighted 5 years down the line, the Zerodha team would still reach out to all impacted users and rectify the mistake.
My only point is, this (104% margin change) felt like it was done in a real hurry, without proper due diligence and proper uat. And as someone has already mentioned here, trust is a very brittle asset.
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I just spoke to the team, and we have already deleted the entries made on the ledger for this. The new entries will be made in the next three days.
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The clearing corporation (CC) takes five random snapshots of all intraday positions and margins across customers during the day to determine whether a sufficient margin is available during those snapshots. If sufficient margins aren’t available either at the end of the trading day or in the intraday snapshots, a margin penalty is charged on the net shortfall amount and broker should bear the penalty.
Having said, be it client or broker bearing the penalty, our RMS actions were same from beginning and if the customer doesn’t bring in additional margin requirements, obligation (penalty) is on broker. It is always advisable to maintain the buffer margin for any increment in margin or for MTM purpose.
We have a blog post explained in detail : Margins & Margin penalties when trading with leverage – Z-Connect by Zerodha
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Well, Nithin on this thread earlier:
Yep there are no changes the way RMS action whenever there is shortfall in exchange stipulated margin. Before peak introduction, broker could run through customer history, etc. since penalty was only EOD and not intraday. Rest is answered through our blog post, hoping you will understand how the things are changed Today
This problem is only with zerodha I am too facing this problem and sometimes brokerage plus margin also interest on the margin is charged!!! this does not happen with SAS ONLINE
Apparently, this issue of extra brokerage being charged isn’t really that uncommon. Came across this post yesterday where a trader was charged more than 1.8k extra around 2 months back, which he later got refunded (only when he raised it on social media).
If this is/was a widespread issue, Zerodha should ideally refund everyone.
Folks, going forward, do check your contract notes, at least on days when you do heavy trades…
Lot of people equate Zerodha, Nithin & Trust as synonyms. Money can do weird stuff to human beings if they think they can get away with it. So Trust but verify 
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Now this is going to be very painful. I used to check once in a while initially. But now it’s been 5 years, and I blindly trust zerodha to get this right. Since I have multiple accounts I may waste half an hour everyday cross checking this. 
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Or just pay Trust-Tax once in a while… 
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