What will be my cost of acquisition for LIQUIDBEES units.
LiquidBEES is a fixed income instrument (similar to fixed deposit). What is unique is that the returns are in terms of new units of liquid bees (in fixed deposit it is money). So if you had Rs 1lk worth of liquid bees ( 100 units bought at Rs 1000), after 1 year assuming you get 6.25% for this, you would get 6.25 new units.
When the new units gets credited, it comes to with no cost. So you need to enter 0 as cost price in the discrepant holdings page on Q. (We are probably the only broker in the country who allow you to edit value of holdings this way for stocks transferred in and for which we don’t have trade prices).
When you enter value as 0 for these 6.25 units, your overall holdings will now be 106.25 units with buy average price of 941 (reduces from 1000). In your holdings visualization, the current price is 1000 buying price is 941, so your P&L will show as Rs 6250.
Btw, this reducing the buying average price for holdings is just to give true picture of the real cost of your holdings. For taxation P&L, these units received as dividends are tax free, so we shouldn’t reduce the price and show notional gains.
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Hey, after reading your article looks like I’ve been making a mistake while punching in the values for the discrepant holdings of liquid bees.
I was instructed by the support staff at zerodha to enter buy value of discrepant bees as the price that I bought the liquid bees at.
As a result every month when i have to enter the details of the discrepant liquid bees, I end up seeing all the previous months liquid bees that I have entered previously. The total number of liquid bees shows only the amount of liquid bees I have actually bought and the dividend is just hanging in the air!
I would be really grateful if you could help me out in this matter.