Prop Trading, Karvy Episode

@nithin
Is Zerodha involved in Prop Trading?

SEBI bans Karvy Broking for nearly Rs 2000 crore in defaults https://www.thehindubusinessline.com/markets/stock-markets/sebi-bans-karvy-broking-for-nearly-rs-2000-crore-in-defaults/article30053349.ece?utm_campaign=amp_article_share&utm_medium=referral&utm_source=whatsapp.com

All Brokers’s involved in Prop Desk.

:slight_smile:

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zerodha involved in prop trading

Answered here:

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What’s happening go their existing clients now , are they able to withdraw their funds or safeguards their holdings made through karvy.
Does anyone uses karvy here?

May be monday we should able know.

From the reports I have read, it seems Karvy misused the POA given by clients (to enable trading) and used it to transfer client’s shares into their own account and then sold them, pocketing the cash.

Operationally, every time there is a debit/credit in my demat account, I get an sms AND email, end of day from both the depository and NSE/BSE - did this not happen with Karvy customers? or where these details changed by Karvy? if so:

  1. How easy is it to change these details given that they are part of the elaborate cKYC process?
  2. What safeguards have been placed by Zerodha (or other brokers / SEBI mandates) to ensure that this cannot be done at a corporate level or by a group of bad actors within an organization?

I did read the post by @nithin but it does not touch upon these likely process gaps - possibly everyone is still awaiting details of the modus operandi.

Edit: As pointed out by @Siva, alerts are only for debits.

How to enable sms/email from depositories. I don’t get them.

If you’ve opened your demat account at Zerodha, we would have already enabled the SMS alert facility for you. Whenever stocks get debited from your demat account, you would receive an SMS from the Depository (CDSL). You can verify this from the CMR copy sent to you when your account was opened, you’ll find the ‘SMS register’ option to be ‘Yes’ and the number would be mentioned there:
image

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Okay but I don’t get them when stocks being credited to my account, is there a way to enable sms facilities for stocks or bonds being credited to demat.

SMS is for debiting not crediting.

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