Liquidbees Pricing Captured by Console Post Dividend Distribution

I am having an issue with Liquidbees pricing captured by Console. I have raised tickets #20191122165430, #20191205932811 and #20200618404852

I am requesting resolution of pricing of Liquidbees since Nov. 2019. Even after 7 months of continuous follow up, Zerodha support team has not been able to resolve it. I have sent multiple complaints to [email protected] also. However, I am not getting any satisfactory response. In fact, their support service has gone from bad to worst.

Just for information, I am reiterating the issue (informed to Zerodha support team in Nov/Dec 2019 by means of above tickets):

“LiquidbeES gives out dividend in the form of units (including fractional units) which are deposited in the demat account. This dividend is distributed after the deduction of tax (FY 2019-20). Therefore, such dividend units are tax free in the hands of investor. In this FY 2019-20, so far I have directly purchased XXX units of LiquidbeES and I have received yyyy units, as a dividend. However, P&L statement from console considers average price including these dividend units (priced as “0” and thus reducing purchase price of original units to as low as 981 instead of 999.999), which creates additional tax liability when sold, as it shows short term capital gain. Since these units have constant price of INR 1000 (+/- 0.001), there should not be any capital gain. In fact, due to various statutory charges, there is a net short term capital loss when these units are sold. Please correct your calculation method for the Console, where these dividend units need to be considered at a price of INR 1000 per unit . Unless you correct it, there will be a very hard time explaining this to CA as well as IT officer during an audit.”

On Monday, December 16, 2019, 06:17:52 PM GMT+5:30, Zerodha Support [email protected] wrote:

Dear XXX,

Thank you for writing to Zerodha.

In regards with this we would like to inform you that this is one among the most important things to-do in our list our developers are working on it, A time-frame for the completion cannot be defined, we will keep you updated once the change is made.

Team Zerodha
Hijaz Ahmed

Dec 26, 2019 09:17 Hariprasad Bommireddygari

Thank you for writing to Zerodha support.

Necessary changes had done in the back-end to correct the average price for liquid bees. Once we have complete the recalculation the average price issue will be resolved, which is expected to take a week then all the corporate actions will be adjusted, accurate buy average and P&L reports will be made available, we request for your kind cooperation in this regard.

May 05, 2020 14:23 Hariprasad Bommireddygari

Thank you for writing to Zerodha support.

We regret the inconvenience caused to you, in replying late to your Email. The liquid bees discrepant issue has escalated to the concerned team, it takes more time than expected. We request for your kind cooperation until the issue gets resolved.

May 17, 2020 18:01 Hariprasad Bommireddygari

Thank you for writing to Zerodha support.

We regret the inconvenience caused to you, necessary action has taken to correct the average price and will be fixed within 48 hours. We request for your kind cooperation in this regard.

May 19, 2020 11:09 Hariprasad Bommireddygari

Thank you for writing to Zerodha support.

We regret the inconvenience caused to you, in replying late to your Email. The buy average price issue is fixed, kindly check the same in kite and back office from your end.

My reply on Jun 03, 2020 05:26

You have still not fixed the issue. If you read my ticket log, you would know that the issue is with the purchase value captured for Liquidbees for the year 2019-20. You have corrected it only for a fraction of liquidbees for year 20-21. Without you correcting this, I can’t send annual report for CA’s audit. I hope you would promptly correct this and we don’t have to communicate on this issue again.

I received a reply from Hariprasad Bommireddygari. He closed the ticket unilaterally without resolving it.

Jun 20, 2020 16:49 Hariprasad Bommireddygari

Thank you for writing to Zerodha support.

We regret the inconvenience caused to you, in replying late to your Email. This issue is fixed in the console, please check the same from your end.

My response on Jun 21, 2020 06:37

Hi Hariprasad, Its getting very frustrating and disappointing with you. I am not sure if you really understand the issue. If you do, then I didn’t have to write this email, as the issue is still not fixed. Although you are claiming that issue is resolved, your email clearly shows that the issue is not fixed. (See attachment) The liquidbees buy average is still showing INR 987.5 instead of INR 999.99 or 1000.00. Please note that the purchase price of Liquidbees can’t be other than INR 1000 (+/- 0.001). If you don’t understand why is it so, get some else or your supervisor involved. I am again reiterating the issue which was explained to you in Nov./Dec. 2019. Please do check original tickets. “LiquidbeES gives out dividend in the form of units (including fractional units) which are deposited in the demat account. This dividend is distributed after the deduction of tax (FY 2019-20). Therefore, such dividend units are tax free in the hands of investor. In this FY 2019-20, so far I have directly purchased 30700 units of LiquidbeES and I have received 391.3 units, as a dividend. However, P&L statement from console considers average price including these dividend units (priced as “0” and thus reducing purchase price of original units), which creates additional tax liability when sold, as it shows short term capital gain. Since these units have constant price of INR 1000 (+/- 0.001), there should not be any capital gain. In fact, due to various statutory charges, there is a net short term capital loss when these units are sold. Please correct your calculation method for the Console, where these dividend units need to be considered at a price of INR 1000 per unit . Unless you correct it, there will be a hard time explaining this to our CA as well as IT officer.” I hope I don’t have to write any more on this topic.

On Sunday, June 21, 2020, 09:31:19 AM GMT+5:30, Zerodha Support [email protected] wrote:

Dear ,

Thank you for writing to Zerodha support.

We regret the inconvenience caused to you, now the dividend received is considered as Zero average price and providing the capital gain reports. We have forwarded your valuable feedback to the concerned team, and the same will be implemented from the current financial year. We would recommend to updated Tax PNL(2019-10) manually and fill the IT returns from your end .

Team Zerodha
Hariprasad Bommireddygari

Within a few hours, Hariprasad has changed his stand from “the issue has been fixed” to "you take care of it by yourself "

Now you tell me, should it take 7 months and countless follow ups to get this kind of response? What kind of customer support service is this?

Please investigate the entire episode to improve your service level otherwise people like me will be forced to take our business elsewhere (I do understand, it doesn’t affect you that much).

It so pathetic and frustrating…

Even after 2 weeks of posting this, Zerodha team has neither acknowledged nor investigated the issue. Really, the service level is very pathetic.

Received one reply from Hijaz Ahmed and unilaterally closed ticket without resolution. After that sent several reminder, still no resolution.

Terrible customer support service.

Still no resolution.

Zerodha’s support team is so pathetic that they just run away from real issues. It has been almost two years and this useless team could not get any time to resolve the issue.