Hi I have a small suggestion for Zerodha. The fund withdrawal processing in case of open positions takes place at 10 pm /11.59 pm (now in most cases) on T+1 and then the fund gets credited next day which becomes T+2. Most other brokers have two cycles one in mornings and one in evenings due to which this one day lag doesn’t happen. Would request if this suggestion can be implemented as it leads to loss of a days float on a rolling basis
Please move it from General to Zerodha category
Even if one has positions, if free cash is available one gets payout next day morning itself, what you mean bt t+2 here? can you give actual example.
I mean I sell shares of a company on Monday (T day) for which funds should be settled on Tuesday (T+1) . For all other brokers the payout gets done on Tuesday morning and funds get credited on Tuesday (T+1) . Since they have two cycles one morning and one evening the funds get credited on Tuesday itself (T+1). In Zerodhas case the payout is marked on T+1 Tuesday 10 pm / 11.59 pm. So the funds are credited on Wednesday (T+2). So there is lag each time of one day. This is same for FnO as well. The funds should be settled on T+1 but are received only on T+2 due to late processing of payout. Other brokers allow payout marking in the morning and requests marked before a particular cutoff time say 7.30 am are processed in first half. And even second cycles payout is processed around 9 pm and funds are credited by 9.30/10 pm. So same day (T+1) which means no lag of one day.
Even in case of FnO if there is a ledger debit for trades based on Monday, it has to cleared on Tuesday to avoid interest but if there is a credit then that is not received on Tuesday but only on Wednesday due to late processing (10 pm/11.59 pm).
Basically bank is enjoying the float of 1 day each time at the expense of client.
If one has not traded that credit will be transferred on tuesday 5 pm only, only if one is traded as you mentioned it will hit on wednesday, said that passed this as feedback to team and we will see if we can do anything around this.
I am sure the process can be optimised. This would help most clients for sure. Thanks for passing the feedback to the team.
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One more q - if I do not trade in commodities even then the payout is now processed at 11.59 pm due to single ledger for mcx and fo. Any way this can be reverted to 10 pm as earlier. Atleast when the payout was processed at 10 pm sometimes the funds used to hit the same day to bank account
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One more very strange thing observed in interest calculation for delayed charges and collateral usage charges.
There is a fundamental error in this calculation for both.
The obligation for f&o for T day is due on T+1.
For both calculations of interest Zerodha considered the debit on T day and applied the interest.
For example, the net obligation for 8th August has to be due on 11th August (next working day). However as per your statement it is applied on 8th August itself and interest has been levied.
I had paid all debits when it was due on T+1 but Zerodha applied interest from T day itself.
This is the problem for each day right from beginning in July.
Had raised a ticket but not received any appropriate reply.
No other broker does this.
Even for MTF if the position has been closed Zerodha charges interest for the day position has been closed where as it should not be charged. I ignored it as a small amount but again a very different practice as compared to other brokers.
First two however is very weird. You give funds on T+2 due to operational reasons and charge interest from T itself instead of T+1 when its due.
Can you DM me that ticket number.
F&O obligation - The margin obligations are payable upfront, and any MTMs are charged to the broker funds on T day itself. It’s just that clients are given time until T+1 to fulfil MTM margin obligations from a margin reporting perspective. This does not mean that the CCs don’t charge the MTM obligation of T day to the broker. In the absence of client having funds, the broker fulfils the MTM obligation on T day itself, and hence is liable for interest charges. Time is given to the client to bring in MTM obligation by T+1 failing which margin penalty is applied by the Stock exchange which is collected from the client.
a) MTF Buy – When the client takes an MTF position, we charge interest from T+1 on the funded amount (since the upfront margin requirement is met through the client’s own funds).
Example: A client purchases MTF stocks worth ₹1,00,000. A margin of 20% (₹20,000) is blocked, and this amount is collected from the client. The exchange also blocks ₹20,000, meaning no broker funds are blocked at this stage. The funded amount of ₹80,000 is actually paid to the exchange on the settlement day; hence, interest starts accruing from T+1.
(b) MTF Sell – In the case of an MTF sell, if the sale value is ₹1,10,000, the funds are received from the exchange on T+1, not on the same day. Therefore, interest is also charged for the exit (selling) day.
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But no broker charges interest for T day shortfall. Its weird. You can check your self. In some cases 18+12.775=30.775 interest is charged for the ledger being negative as it causes cash collateral shortage if the cash collateral is exact. But this is quite unethical that we are getting funds on T+2 and you need on T day otherwise you charge 18 interest. I am sure exchange cant have double standards that they pay on T+1 and receive on T day. There would be a value date concept otherwise every broker would charge interest for T day. Anyways if its your policy I respect that, no problem, but atleast you should consider a way to give payout on T+1 to minimise this payin and payout cost of funds.
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We have explained and shared your account-specific details via the ticket. The exchange blocks the crystallized loss margin on futures positions both in real-time and at the end of the day. In the absence of client funds, broker funds are utilized, with the actual transfer occurring on the T+1 day. For your reference, we have attached the relevant NSE circular highlighting this policy.
Intraday:
EOD:
Additionally, to clarify the payout process: funds can be withdrawn on T+1 day using the instant payout option (up to ₹2 lakhs), provided there are no open trades or positions other than delivery sell. If there are trades in the account, we must calculate the free funds before processing the payout. This is why payouts are processed post-market and credited to your account either later that night or the following morning, depending on the bank’s operating hours.
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