Email received from BSE

#1

I’ve received the following email from BSE. Is this a legit email? The hyperlink is redirecting me to http://rornorge.no/oslo

Is this a phishing email? My current balance doesn’t seem to be matching, also my holding show 0 while I have holdings in my demat account. What’s happening Zerodha?

Difference between 'funds balance' and 'securities balance'?
#2

Hi Dorkstar,

To answer whether this is a legitimate email or not - Yes, it’s a legit email sent by BSE to all clients of Zerodha. I’ve answered your queries in detail below:

Why have you received this email?

A: This is part of SEBI’s new initiative - enhanced supervision, you can download the circular from SEBI circular

One of the additional compliance activity all brokers are required to undertake is to upload to the Exchanges, the account balance of all clients as on the last day of each month. The Exchange then sends this information to each client through an SMS & Email. The reason this is being done is to make the client aware of the available funds in his trading account and to avoid possible misappropriation of funds.

The email that you’ve received informs you of the available balance as on 31st July 2017. For reconciling the funds, suggest you check your ledger balance on Q Ledger balance.

Reiterating, the balance sent to you by BSE is as on 31st July and not as on the date of sending the email.

The hyperlink is redirecting you to an unknown website.

A: Looks like a mistake on BSE’s part. We’ve escalated this to BSE and this will be sorted the next time BSE is sending such emails.

The total number of ISIN’s show 0, whereas I have holdings in my demat account.

The balance of Equity shown here is the quantity of shares that actually belong to the client but are held in the broker’s beneficiary account for whatsoever reason. This could be when a broker is into providing margin for purchasing delivery shares, in such cases, although the stock belongs to the client, it’s held in the broker’s beneficiary account because it’s financed by the broker. Since Zerodha is still not into margin funding, the stock balance will show 0. If there are holdings in your demat account, they won’t show up here because they are held in your own demat account and not in the broker’s account. To check your demat holdings, please login to Q and check here.

Here’s BSE’s circular which highlights the same.

Additionally, if you’ve pledged stocks and raised F&O margins, they would show up under the ‘Quantity of Securities Pledged’ column.

I have not activated BSE/have never traded in BSE segment. Why is my BSE balance showing negative?

The balance updated herein is across all Exchanges and not specific to BSE. So if you’ve traded in the other Equity Exchange/Derivatives, the combined balance would be shown here.

Why do I have a negative balance and how should I repay it?

Please check your ledger to ascertain the basis of your balance, there could be DP Charges, Demat AMC charged because of which your account may have gone into negative. You can use any of the payment methods as stated here to transfer funds to your Zerodha trading account. Please note that the funds will have to be transferred from registered bank account only.

I wish to withdraw the available balance in my account.

To withdraw your existing balance, you’ll have to login to Q and place a withdrawal request here.

I have closed my account long time back, received confirmation of such closure from Zerodha and still have received this email from BSE. What should I do? Please close my account.

If you’ve closed your account and still have received this email, we’re sorry for the inconvenience, we’ll check with BSE, why this email was sent to you. If you’ve received confirmation from Zerodha that your account is closed, you can ignore this email. This email is for your confirmation only; if the information displayed therein is correct, there’s no need for you to act upon it.

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