broadly can you quote why is it a game changer ?
@viswaram I am talking from a platform business point of view only, not trading in general despite the two being intertwined here. There are two competing aspects for any platform: (1) maintain the platform such that only âhigh qualityâ users remain on the platform. (2) Increase user base as platform effects become stronger when users are more in number. These two aspects are competing because doing one slows down the other. Nithinâs move while will increase quality of users, it might slight decrease number of users. This is a bold move which may have short term negative implications for business despite being useful for the society in genral but big positive in the long term for the business as well as the society. Nithin, of course, already knows this and has talked about on these lines in the past.
This is what I could say broadly. Sorry if I am still not very clear. If the case get published, I may share it here but donât hold your breath as it is a long drawn process.
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We had shared this on social media yesterday.
https://twitter.com/Nithin0dha/status/1696854528186863884
So, one other potential loophole here was that for stocks that are transferred in from other brokers, we allow the customer to enter the buy price for the stock and to be able to calculate the P&L. Since the buy trade is with another broker, it is impossible to validate if what is entered is genuine or not. Someone could enter a much lower price and hence game the verified P&L.
This is possible only in equity delivery trades and hence equity P&L only. In F&O, positions canât be transferred from one broker to another, and hence F&O P&L canât be affected.
But since there is no way to verify buy trades done at another broker for all stocks transferred into Zerodha we are removing all such trades from the Verified P&L page starting now. Verified P&L will only include P&L of those trades (buy and sell) done at Zerodha.
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Let us keep things simple with more clarity. Let me tell you a real story, the ground reality.
Last month a poor guy who delivers my lunch everyday told me that someone is insisting him to open a demat account and trying to convince him that he can make good money if he opens the account through him. He asked my opinion, â should Iâ, as he knew that I am into stock market. I said âNo, answer me 3 things 1) is that guy who is offering you a profit, himself making profits ? 2) If yes then why is he into convincing and insisting business? 3) are you willing to and capable of being among the top 1- 10 percent in the market ? â he said â I do not knowâ. I said â Do things which you knowââŚ
Thank God he decided to have some clarity thus came to me , he was saved from being trapped.
@Nithin as you said âthis is how market grewâ but please do not ignore that there is a DARK fact behind this crowd gathering in market in last few years. Innocent people are getting lured into market just because of this referral benefit scheme by SELFISH people.
WE hear so many news about losses, ruins even suicides by helpless immature people. who is responsible for dragging every tom dick and harry into market?
Moreover as you said âverified pnl cannot be tamperedâ although in the âclone appâ circle the claims are just opposite, I am wondering that how many among the average retail traders who can be easily trapped by fraud influencers are capable of verifying the link itself before clicking!
We are taking action against any clone apps out there. If you have any links, do share here.
We recorded a conversation yesterday with Abid @Sensibull and Sandeep from Finec Law. Sandeep had this very interesting thing to say.
Ultimately, the regulatorâs job is to remove ignorance from the market and not stupidity
In a way, our job as a platform is also to do that. If someone wants to be stupid, I donât know what more we can do.
About the affiliate links itself, we will have to wait and see how the regulations play out. As I mentioned earlier, canât really take a stance on our own. And the changes expected are not too far away.
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I created a verified PnL link for this month (August). When I generate a new link next month, it seems the link for August will no longer be active.
Could you fix this?
Hmm⌠we canât do that. Then, there can potentially be lakhs of such verified P&L links.
I have an idea to tackle that issue.
Consider implementing a fixed-size queue, structured as follows:
- Allow a maximum of 4 verified links for weekly PnL.
- Permit up to 12 verified links for monthly PnL.
- Allow a maximum of n (5 or 10) verified links for yearly PnL.
Now there is no headache of tracking lakhs of verified links, but a small fixed number of links per user.
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As I said somewhere earlier, adding such random ad-hoc rules complicates life for a business. Over time it becomes a technical debt of sorts.
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@Algo_Mint post your query in the relevant thread.
It is just going to get lost in this fast growing thread. Same discussion is useful for others later on.
Hi @nithin ,
Iâd like to suggest a feature that allows users to change the influencer they referred to. This could help reduce the earnings of scammers who try to mislead people. To control this, we could limit the changes to once a year, so itâs not done too often and avoids misuse.
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Ah, no, changing canât be allowed. 
But disassociating is something we might end up offering as a regulatory requirement in the future.
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@nithin, with respect to the upcoming SEBI regulations, how will these impact someone who creates YouTube videos or offers courses on platforms like Udemy? Specifically, if they teach about automating strategies using broker APIs, backtesting, and also provide algo development services for clients looking to automate their strategies, do they also need to register with SEBI as analysts or advisors? Additionally, can they use affiliate links in their video or course descriptions without encountering legal issues?
I donât think teaching anything is an issue. But if someone is scamming someone by manipulating P&L or anything else to sell something, that is a fraud, with or without SEBI regulations.
It isnât an issue if you teach how to program, automate, backtest, etc. But if, along with teaching all of this or helping a person build an algo for their strategy, you also say here is a strategy that generates a buy & sell signal that is as good as being an RA, instead of you giving advice, your program is giving advice. If you are suggesting strategies, they need to be RA/RIA.
I have a feeling that this affiliate link business is coming to an end. It looks like any affiliate link in front of a video will be looked at as an ad. And every ad will need to be approved and unless the video is approved by the exchange, it will not be allowed to carry an affiliate link.
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SEBI will be having an eye on Zerodha if they ever do that. Traders are private entity , and nobody can share oneâs trades without their concern
@nithin verified pnl is a good initiative, as a thought.
But the implementation needs improvement.
Need a have capital employed or at least show the percentage of profits.
Otherwise big fishes will always use it as a official luring tool.
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@nithin the âDescription of Profileâ section of verified pnl used to allow to use Vernacular scripts ⌠but now its giving error ⌠can you please ask the team to fix this?
As mentioned a few times above, an equity curve is coming soon.
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Hi @nithin,
Can we have one more option for displaying Zerodhaâs customer ID?
In case someone wants to display only ID.
