Unnecessary Trading restrictions at Zerodha

Trading
1

In last few days, I am observing there are many unnecessary trading restrictions which are placed by Zerodha. I am sharing some of my instances:

  1. I tried to purchase Omaxe at 62Rs. on Friday but an error showed that trading is blocked and on the same day it moved to upper circuit and today also it closed on UC.

  2. Trading in Illiquid stocks - Can anyone tell me what is the criteria for trading in Illiquid stocks. I can easily give you example of two stocks which are fairly liquid. First is ICFL-N2 whose last 10 days average traded volume is around 400 and IFCI010811D, whose last 10 days average traded volume is around 100 (its value is 10K).

  3. Trading in F, E and M groups of BSE respectively- Trading in the respective groups are also blocked at Zerodha. I think there is misconception of Zerodha team that these stocks are in trade to trade but no where it is written in any circular that you cannot do intraday in them. Moreover, if they would be in T2T, then why would the exchange have created MT group. Another reason is showing for blocking trading is of illiquid security which I have said in point no.2

  4. Limited Trading in BNF Strike prices - You can trade only limited strike prices in BNF. I am a small trader, i use to sell BNF options that are in the range of 5-15 but they are all blocked.

Trading should be free from unnecessary restrictions. Zerodha is getting brokerage if it allows to trade in the above mentioned points, then what is the problem with Zerodha. Zerodha gets brokerage and client gets to do what he wants. At the end of the day both are happy.

If there is a chance that the trade in above mentioned points are risky, then Zerodha should get a consent form signed by client that it will be sole responsibility of the client and he/she has to bear all the penalty/auction. Thats it.

Hope my views will be considered by Zerodha team and I will be allowed to trade in them.
Thanks

2 Likes
2

they are trying to protect you from a pump & dump penny stock bro.
what is wrong in that ?

I dont know much about (2), (3), (4). so can’t comment.

3

You can create a ticket here and the concerned team will assist you regarding the same.

Its not just based on the category of scrip but also, certain other parameters. You can read more here

True that we are providing a platform for you. But, at the same time, we have the responsibility to prevent market manipulation and to protect innocent clients falling into these penny scrip traps. That’s why zerodha kept certain restrictions in trading. Its not just the brokerage that makes us happy but at the same time, keeping the clients away from intentional/unintentional unfair trade practices.

As mentioned above, kindly create a ticket.

4

I agree, too many restrictions are there and some are weird.

I will really be more than happy if they can come up with some solution to let client trade on there own risk by taking consent and trying to act as guardian.

2 Likes
5

Totally agree. If you have enough reasons to support the trade that you wish to take then you can create a ticket as mentioned above. Concerned team will assist you regarding the same.

6

i too also not able to sell some shares as it now shows BSE segment in holdings but i had bought from NSE…why is that so? when i try to sell it shows error as segment BSE not enabled. why the f i cant sell my stocks? im not purchasing them right?

1 Like
7

Read this.

If you want to sell on NSE, just add that stock to your watchlist and sell it from there.

8

in USA one broker is caught selling order flow data for $90mn the con name is robin hood

1 Like
9

Continuing the discussion from Unnecessary Trading restrictions at Zerodha:

lol if price is available then why we cant buy forget pump and dump the whole market is such

10

@abhishek.vg I have created a ticket and in reply, Zerodha sent me list of securities which are illiquid and securities in which MIS cannot be done. But I do not find the F group stocks like IFCI150312A, IFCI010811B, PFCBS2, 1075ICFL21A etc. If these are not in these list, then intraday should be allowed in them.

Here are the links for the lists


1 Like
11

The first list isn’t the latest one. Thanks for notifying us. We will update the above-mentioned list.

12

Is 2nd list regularly updated ? N if i accidently buy any stock which is blocked on mis, does kite gives an error or i cn get trapped n forced to take delivery ?

13

Yes.

As soon as you try to place a buy order you will get a nudge for the same. Check the below mentioned screenshot

image

14

Bt this nudge doesn’t come on stocks blocked by zerodha fr mis like aavas, arvindfasn etc. in list 2 … so is thr an error whn i place buy or sell order in mis ? Or i wl hav to take delivry if i dint chk the list2 before gettin into mis trade in tse stocks ?

15

You will get a rejection message stating MIS not allowed. You can try with a single quantity if required when the market is open.

16

Yes… thanks!!

1 Like
17

Hello Abhishek, Please tell me content to be written on ticket to unblock scripts I wish to buy.

18

The stock is showing on BSE due to recent changes were Zerodha now shows holding in exchange that had higher closer price. Earlier it was default - NSE. If you have brought on NSE and it is not yet delivered, it can only be sold on NSE. Same goes for BSE.

1 Like
19

You can write the rationale behind the trades that you want to take. That ll suffice the requirement.

1 Like
20

@abhishek.vg Can you please explain what do you mean by rationale behind the trades. Obviously it is purchasing for profit. It does not matter whether the stock is of A group, B group F E or M. As long it is in T group or ST Group or MT Group, it matters but for others it should not matter. Everyone purchase or short sells for profit. No one is mad that he or she will waste his/her hard earned money.