@VenuMadhav if possible can you please provide in person.
Yes, we upload the Voluntary auction file to NSE around the same time.
@VenuMadhav From 9:46 am onward IREDA stocks were consistently trading until 3:04 pm.
- Why was the RMS (Risk Management System) unable to execute a purchase? Isnât it strange?
- Also in support of the Zerodhaâs responses/statements there is no supportive document available/accessible anywhere.
- What happens to other people who has Short Position in IREDA, are the settlements happened as same as me on close out price or differently.
Thanks for such elaborate answer @VenuMadhav . It answers most of the queries . Also feel that such nitty gritty details could be added to official varsity posts.
It just leaves me with 2 more questions.
1)So in case of internal settlement a manual call is taken at the time of submitting voluntary auction file from your end whether you want to go through voluntary auction route or buy directly from market on T+1 ? Assuming it is done in the best interest of client to close out short delivered position internally as soon as possible.
2)when you said team decided to buy ireda from open market. how couldnât the team procure it as it was actively trading majority of time during T+1. why were they unable to procure it as it was actively traded for 5 hours that day. Also you mention âdesired priceâ. how broker decides âdesired priceâ .Best available ask should do the task right. And even as broker if you still procured some quantity shouldnât you pro rate it across all short delivered clients to make process fair for all clients than a few clients facing all the consequences.
Just sharing my thoughts because as a broker you guys have always inculcated such practice of fairness.
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After knowing all these complex stuff I feel 20rs per order makes sense 
Thanks for sharing
And a 20rs SL order⌠
Hi @nithin @VenuMadhav , is there a SOP or tenet that the RMS team follows while squaring off positions? it feels like a partial negative margin balance shouldnât grant the team complete discretion to take arbitrary actions on an account.
To ensure I can better manage my trades in the future, I basically require clarification on the following points:
- How do you select the strike to square off? A precise criteria used by the RMS team for selecting which positions to square off would definitely help (also brings in more transparency - which Zerodha is a big promoter of).
- How do you decide in what quantities to start squaring off? For a 1.5L shortfall, itâs clearly evident that one lot wouldnât do the job. However the team decided to do it that way. Then another lot - even when you now have some idea on how much 1 lot will influence. Margins still not in positive. So another 2 lots the third time. Margins still -30k. But somehow the team (mercifully) decides to not square off any more and leaves the account there. Is there a method in this madness that Iâm missing?
Ticket #20250731429186 has more details.
And yes, this please. It otherwise is too lucrative for zerodha to keep doing what they do currently.
On email please!
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While Iâm incredibly frustrated by the vague responses on the ticket, I also feel a strange sense of âfortuneâ because, in a system where the decision is left to the discretion of the RMS team, they could have just as easily squared off my more illiquid 2026 or 2027 positions.
@nithin Donât you agree that this kind of discretionary action by the RMS team introduces a risk no retail trader should have to face (as if the market risks are not enough already!)? It feels fundamentally unfair when a systemâs decisions arenât governed by a clear, pre-defined set of rules but rather by individual choice.
A part of the response on the ticket mentions,
âFactors such as liquidity, margin requirements, and current market prices influence this decision. Positions that are more liquid and have higher margin requirements are prioritized for squaring off.â
But theyâve done just the opposite by squaring off illiquid 14th Aug options rather than Jul 31st (liquid, lower ltp, high margin requirements due to elm + no calendar spread benefit).
And then you also wonder why zerodhaâs market share is shrinking!
I just want to end this by repeating, a partial negative margin balance shouldnât grant the team complete discretion to take arbitrary actions on an account. They must be guided by some set of rules.
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We do have general principles around which square offs are based. When margins shoot up, and required margins become greater than available margins, the RMS team exercises discretion and reduces the margin requirement by ensuring the least number of positions of the client are squared off in order to bring down the margin requirements. Further, we also ensure to maintain the post square off portfolio very similar to the directional portfolio maintained by the client prior to square off. Goes without saying that liquid positions are taken into account, before considering squaring off of illiquid positions. Will have someone check the details on your specific account and respond over email.
Is there a TAT for this? Still awaiting a response on the ticket.
#20250731429186