Good that we are having a healthy debate here. Unlike the TV news channels. 
@nithin I completely understand your point of running a business wisely to have optimal use of resources and thus offering mutual funds in Demat format. I buy all your points about the cost factor, legacy issues, and external dependencies so Zerodha prefers Demat mode for MF.
But, don’t you agree with me that in this bargain, investors are losing something? Out of all the issues of Coin that I have listed in this thread, the most important one is the rigid cut-off timing at 1:30 pm.
Nithin, in your previous response you have mentioned that the MF orders are executed the same way as the equity delivery orders.
If it is so, then why is that Coin has an additional gate that closes at 1:30 pm, while the BSEStarMF cut-off for placing buy order of an equity MF is 2:30 pm and BSEStarMF cut-off time for sell order of an equity MF is 3 pm. So Coin asks you to place a buy order 1 hour prior to BSEMFStar cut-off 2:30 pm. And Coin asks you to place a sell order 1 hour 30 minutes prior to BSEStarMF cut-off 3 pm.
If the structure of Coin is similar to how it processes stocks, then there shouldn’t be any pre-closure at 1:30 pm.
To everyone, who wants to counter my point by jumping with arguments like - it doesn’t matter in the long run, etc comments, please spare the discussion and honestly reply to this - if tomorrow Zerodha Kite brings in an additional gate so that you can’t buy or sell stocks after 1:30 pm while the market closes at 3:30 pm, would you say the same thing? How would you feel?
Moreover, what happened on 12th April when all lump-sum orders on Coin failed, should have been a wake-up call to resolve the issue ASAP. And this got me thinking that these two issues are interrelated.
If Coin could execute the orders immediately in real-time instead of holding on to them and then executing them in bulk post 1:30 pm, then there is no question of any buffer time required to validate the orders. Zerodha could have avoided that 12th April incident.
I did a lot of research on this cut-off timing. Went door to door of each broker website, spoke to their customer care, to find out which stockbrokers are currently offering MF in Demat format and what are their respective cut-off timing. There are stockbrokers who are also offering MF in Demat format + their cut-off timing is equal to BSEStarMF cut-off timing. They don’t pre-close the gate. So I know it is possible to get rid of the bumper on the highway that Coin currently has. If those stockbrokers can offer MF in Demat + have cut-off timing equal to BSEStarMF, then why can’t Zerodha do it?
I have tried everything so far by constantly nudging (which the team might be feeling as nagging by now), showing resentment and frustration, raising official Zerodha support ticket, waiting patiently for 9 months, and yet the needle has not moved. I didn’t want to, but then I was left with no other option and I submitted a complaint at SEBI (not an act of vengeance or revenge, but thinking if SEBI interferes, things would move, maybe), and you might be aware of the complaint is still open and the compliance team is not answering my questions in order to arrive at the truth.
I don’t know what more can I do. The SEBI guy called me when I made a further appeal, asked me that why don’t I just quit and move to another broker, I told him simply, can you email me what you are advising to keep on the records. If I wanted to move out, I would have just silently resigned. Nithin, if you are listening and if I can offer you something out of this discussion is - if a customer is ranting, it is only because he wants to be with you. And the rants are about what is troubling him. If he wanted to move out of the relationship he would have gone forever without making any noise and become indifferent. The same goes with interpersonal relationships also. People fight because they care.
@ZeroIndian welcome to the discussion. I read your post but I have a little concern about this statement of yours.
If Zerodha is in it, it should be in it wholeheartedly. Why play the game half-heartedly. Nithin being a sportsperson would agree with me.