Trade Clarification


Has anyone received any trade clarification mail lately? I have received one seeking some clarification and justification regarding the same. All the trades were normal cash trades (were not leveraged) and were made just to get .05 tick profit. I don’t trade on tips and Certainly not related to any influential person or corporates or such.
Please share your opinions and views.

Edit : Attached screenshot of the same. Trades in JPPPower and JPAssociates are mostly intraday or swing trade (squared off the next day). For SURATEX I have some shares and the share price has fallen lately and I have been averaging and adding some-more to my initial position as I think its a good company with zero debt and large cash reserves. As for BHANDARI, its trading around 1.5 and its a shitty share and I have just a few thousand, bought some months ago around 1.8 and have left it as is since it is falling and the loss is insignificant.
These are just some shares I trade. I mostly trade in Idea and lately been trading Reliance power.!


Can you please elaborate on what exactly the clarification required


Added details to my original post.


@Gautam is this from zerodha or bse nse exchange survelliance & inspection dept ?

I think in penny stocks if ur daily volume is a certain percentage like 4.2 of total volume etc then disclosure of the transaction has to be made?

Or did u check if anywhere u neared controlling stake?

Somewhere automated survelliance has caught these transactions fulfilling certain logic

In below link read page no. 5 also the complete pdf later,-42,118


I think the mails from zerodha.

JP associates and JP power are liquid shares with huge float. I usually get out after .05 profit and sometimes just hold it and sell it the next day. My quantity is around 2L and I don’t think it’s too much with respect to the daily volume. I always buy in CNC and not not MIS, I think that’s where the problem is.
Well I read the pdf and the ending was brutal, anyway, I think I get what it’s saying but for a 3-4 rs stock where the daily range is at least .15 to .30 paisa is it crime to trade those shares for .05 to .10 profit. The guys in the pdf, worked in groups to get the stock price up which hardly had any volume, but if anyone thinks I have the means to manipulate the price of shares like JP Associates or JP power then well… be my guest. I am already on verge of bankruptcy, literally.


@Gautam oh Gautam not meant entire pdf is applicable to u. Just check the quantity traded by you versus total volume. If around 4.2 percent it may be reason to system picking up.

Another reason may be ur next offer price order after the previous bid order is only a 0.05 difference. May be that is the reason? I am just thinking various angles


Who is seeking this clarification, just curious?

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@siva @nithin
Least I can say that the person who scripted this email is novice person who is not that good at drafting business emails.
“Script” ??!!!


I believe exchange asks these clarifications, we just forward the reply to exchange.

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Exchanges seek the answers, we just forward them.


Then NSE is hiring incompetent people.
There are many grammatical and vocabulary errors. So much so that it feels like this email is spam.


Ok, we don’t seek any answers we just forward that to concerned exchnage, they have some alerts in place, this is one of the reason why we don’t allow market orders for stock options. Almost for every market trade we will be questioned.


Shiva thanks for the clarification, but only these kind of things makes me curious and to reconsider the thought that the entire system is corrupted and NSE and the exchanges just collude with the rich and HNI individuals. Why? I have more trades in Idea when It was around 11-12, and they were huge quantity but call it good luck that I got out of those trades early because if I hadn’t and held on you could see where Idea is now and sitting with 50% loss but they are not asking questions about that.
Also algos are also trading in the JP associates and JP power. I have seen the price of JP power(1.80) were the circuit limit was 5% so not much range just .05 to .10 movement daily and whenever you put a trade to buy quantities like 1L to 2L in either BSE or NSE you could see the algos at work instantly, they will put their buy order just .01 tick below and sell order .06 above your price in bse, Their order placement is instantaneous and during sudden movements I do have problems getting out but while getting in I use limit market order to take out the entire positions of the ask price, which also include the algos (which sadly I could only do in only one of the exchanges being a human) for after these market orders , the algos are quick to change their positions to the next level in an instant but I can’t do the same.
I wonder if these algo traders too get these compliance mails or it has been directed intentionally just at me for irking them.


@shiva I have also another few questions. I could understand the mail since my position in JPAssociates and JPpower was huge but I don’t understand about the other two companies.

  1. SURATEX - I started buying when it was around 1.95 (30-40K) and since then It has started falling as the overall market is in bear mode. Well after my buying in the next few days it had risen to 2.20 and I could have got out but I coudln’t since I am not an early riser but I think the company is good as its debt free with huge cash reserves and so I added some more to average my price on regular basis and now my entire position is around 69K. I haven’t even done intraday in it which isn’t even possible so what is the issue in this? I am going to hold it and add some more if it gives me the chance so is there any problem if I do so?
  2. BHANDARI - I looked at its chart and thought it would go up .15 to .20 after falling so I bought 15k around 1.80 but it didn’t rise and it started falling (same case as above) and I too added another 10K at lower levels 1.40. Its a shitty company I know and I will get out if comes to my price or higher but what the issue with this? If you see the chart of this company whenever the share price fell after few weeks it rose again with huge spikes in volume and I wonder if those people who bought at those times got these compliance mail? Because after I bought at the same levels where I thought it would spike it started to fall.

And one more thing, all my trades except the above two companies are intraday in cash (not MIS and without leverage) so is the problem related to it that I don’t place MIS orders?

Also if I will trade just nifty options will there be compliance mail If I trade too much?


These mostly are automated emails seeking clarification. Even if companies engage in share manipulation, all they do is send a clarification letter saying they have nothing to do with the rapid movement nor do they know who did it. There is nothing to be fearful of in this.
All that you’ve written here in this blog is enough to scare those morons from the exchanges; if you forward this as it is, they will just file it as a response and close the ticket. That is all.