Just wondering what zerodha can do here. Its the client responsibility to take care of such things
@Krishnakumar I hope you read the thread fully.
Agreed with your comment that it was my responsibility. But in my case it went beyond my control.
Zerodha placed orders in open market on behalf of me and their other clients next day to close any short position of IREDA. In such situation my position should be called for internal settlement instead of auction settlement. If Zerodha has settled me at highest price on next day then my losses would be half (~20L) instead of (40.5L) which they donât. I think now you had a better understanding of my situation.
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Yes Yes, I truly understand your scenario
I was just wondering what steps zerodha could take (list of rms measures) to both settle shares to the buyer as a clearing corporation as well as minimize the loss for the clients
My possible guess is :
I think like you many other clients also had short positions on the same scrip, and zerodha tried to buy and settle to minimize the close out price loss, but since that day it had hit circuit again, they couldnât purchase to suffice all the short positions (for all the clients) and hence yours was settled with close out price
You can raise grievance with sebi as well as the nse / bse exch in case you are not satisfied with the brokerâs response. create an account in sebi scores portal https://scores.gov.in/
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@Krishnakumar As per my understanding Zerodha RMS should be able to buy some percentage of shares on next day for all their clients short position as share of IREDA were trading till 3:04 pm next day, and should settle their clients position accordingly partially based on that percentage.
These information should be made available to their clients for better transparency post settlement so client can have a better understanding of their settlements.
@nithin @cvs @VenuMadhav am i making sense here?
Would appreciate your response.
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Ideally, we would have taken part in the voluntary auction, but since the stock was hitting circuit, we were anticipating that we may not be able to get a fill in the voluntary auction and thus attempted to buy the securities, but werenât able to.
@VenuMadhav I am aware of it that RMS tried to buy share on 12 Dec. Can I have Order no plz to verify if not a single share Zerodha was able to buy on said date.
Would appreciate your response
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Hi @d_p - Hope Good will happen to you soon.
Initially I started reading the thread and annoyed by your very high risky trade. But yes, mistakes do happen and we must learn from it.
But after reading the Zerodha support team msgâs, I feel your argument made sense.
They are changing colours at each and every msg.
Initially they said, they try to buy at auction but later they are now saying they tried at open market.
Zerodha is getting shittier day by day and I completely stopped using them after facing many issues and seeing so many technical glitch tweets.
Your point is damn valid, the shares of IREDA was trading till evening 3pm on open market.
Even I have bought IREDA shares on one of my Upstox account on 12th Dec in mid-afternoon at a price of 98.90 and my Upstox Trade number for this purchase is 24992179.
I can clearly say that from the above msg of @VenuMadhav it doesnât make any clear sense.
I suspect Zerodha has never attempted to buy the shares on open market on behalf of you and thatâs for sure. They just simply pass the losses to you and why do they care for you ?
Ideally we would have taken part but since it was hitting circuit, HOW CAN YOU ANTICIPATE THAT YOU WILL NOT GET THE SHARES IN AUCTION MARKET ?
WITHOUT EVEN ATTEMPTING TO BUY IT IN AUCTION, YOU JUST ANTICIPATED AND DIDNT EVEN PARTICIPATE IN AUCTION ?
OK, IF NOT IN AUCTION WHEN THE SHARE IS TRADING TILL 3PM, CANT YOU ABLE TO GET A SINGLE PIECE OF SHARE THROUGHOUT THE DAY ?
This man has fought a case against Zerodha and got compensation.
Even there was one more court case win which I couldnât find a link immediately where a man fought a case against exchange and won it in one of the historic case.
I know the mistake is there on both sides, but there should be transparency with the clients.
If Zerodha has tried to purchase the shares on your behalf , then they must share the bill/order number. When the shares were trading throughout the day till 3pm, canât they able to buy a single piece of share ?
If they canât able to show the evidence then you can definitely take this case to SEBI and even to courts for such misinformation and lack of transparency to the clients.
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@xmenwolverine thank you for your response here.You have understood the things better. I believe in resolving issues with dialogues internally and hoping someone from Zerodha also try to do same.
I still have no clue what happened to my position and no one from Zerodha is giving updates but copy pasted answer
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Hey @ShubhS9 , @VenuMadhav my settlement has been done at 298.05 on 23 Jan ( mentioned in contract note) the share of RVNL were trading very much lower than the price of 298. Can you please explain how Zerodha have settled.
As 20th January was a settlement holiday, the stocks short-delivered on 19th January were auctioned on 23rd January. The price for the auction market for RVNL on the 23rd was 384.42 (on the upper side) and 256.28 (on the lower side), this range is calculated based on the closing price on the previous trading day and is 20% higher and lower from that price.
In the auction market, the stock will not trade at the same price as it does in the normal market. The seller of the shares will look to sell the shares at the higher price and the auction price will be based on this.
Since the shares you sold were short-delivered, the same were covered in the auction market, for which you would have received the auction contract note, there is no discrepancy in this price.
In cases where shares cannot be purchased in the auction market, the trades are settled through a close-out rate. The close-out price will be equivalent to the highest price prevailing in the NSE from the day of trading until the auction day, which is 345.50, or 20% above the official closing price (288.75) on the auction day, which is 346.5, whichever is higher. You can check out this article to learn more about short delivery:
@ShubhS9 thank you for explaining. If it is settled by exchange can I expect a contract note from exchange?
HI @VenuMadhav , @nithin as per recent response received on my ticket with Zerodha it is clear that Out of total short quantity Zerodha RMS was able to buy 50% of IREDA shares on 12 Dec 2023. Then why my 100% position was considered for Close out.
Isnât it unfair?
Contract notes are not published by the Stock Exchange. Exchange gives trade data to the broker, broker processes the trades and emails the contract note in the format as prescribed by the exchange.
I have previously informed you that this is not a forum for you to get your account specific queries resolved. I apologies, but I will not be able to engage in 1-to-1 queries that involve discussing a private account. As adviced earlier, please follow the appropriate channel of getting your grievance resolved. Have provided all clarity that there is, shall refrain from commenting on your account specific queries again.
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I have diligently followed the necessary steps to seek clarification and resolution by raising tickets and reaching out to Zerodhaâs customer support. Unfortunately, the responses from Zerodha support teams have been unsatisfactory thus far.
I only began gaining valuable insights when I discovered this platform. As a Zerodha user, I believe I have the right to ask questions and express my concerns if I am dissatisfied. If there had been no sense of partiality in my case, I wouldnât have raised these concerns in the first place.
I would have appreciated it if someone at Zerodha had demonstrated sensitivity to my situation, which, in my perception, is still lacking.
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