Zerodha....

[startrade]

deleted...

 

[absolute.zero]

Hi Sachin / Zerodha

Today, I faced a lot of problems due to freezing of stock watch. I tried refreshing but it didn't work. Only thing I could do to see the rates by double clicking the symbol row which opens market depth. This started happening around 2:30 PM, I tried logoff and login again, but the problem persisted there. This happened to me first time, but it is very difficult to scalp / day-trade if such problem will repeat again & again.

Can you enlist possible causes behind this, and also remedies to overcome?

 

[sawash]

Liability clause in Zerodha's agreement

@zerodha: Your "SUPPLEMENTARY AGREEMENT BETWEEN STOCK BROKER & CLIENT" says:

16. Notwithstanding anything contained in these presents, any amounts which are overdue from the client or a member of the client's family towards trading either in the cash, F&O or derivatives segments or on account of any other reason to the Stock Broker or to any of the Stock Broker's group or associate companies will be charged delayed payment charges at the rate of 1.5% per month or such other rate as may be determined by the Stock Broker. The client hereby authorizes the Stock Broker to directly debit the same to the account of the Client at the end of each month. The client also authorizes the Stock Broker to debit charges for depository services to the trading account.
a. The client also agreed that any outstanding amount in his account or his spouse/relative or any company in which he is director or substantial share holder, shall be adjusted by the stock broker out of credit balance/shares or securities in any other aforesaid account.

What exactly is meant by:

1. member of the client's family
2. Stock Broker's group
3. associate companies
4. relative
5. substantial share holder
6. such other rate - how will it be decided? When, how and to whom will it be communicated?

I'm hesitant to sign here because the scope of liability seems to be broad and ill-defined.

I'm not a lawyer but what i understand is this: It's an attempt to avoid the lengthy process of suing defaulters in court by creating the possibility of directly debiting a relative/shareholder's account for the outstanding amount and interest (at a potentially unspecified rate). If you sign this, you become a guarantor to Zerodha and it's unspecified group of companies against default by your relatives and companies in which you are a substantial shareholder. Even if you terminate the agreement, you will continue to be liable for the period that the agreement was in force. You can't sue the defaulting party (relative/company) because you have no agreement with it. The stockbroker has no incentive to go after the real defaulter if there is a guarantor available by virtue of such clauses. They offer incentives for referrals, but if the referred clients are your relatives, you will be acting as guarantors for each other. If one of them defaults in a big way, you may end up losing everything.

@other readers: Do other brokers also have a similar clause in their agreements? I know nobody here can offer legal advice, but an informal discussion on this issue will be helpful for the community.

PS: I had posted this as a separate thread, but it probably didn't catch attention of the Zerodha employees. I'm posting it here with a few refinements. Anyone who can throw more light on this issue is requested to weigh in.

 

[Zerodha]

Hi Sachin / Zerodha

Today, I faced a lot of problems due to freezing of stock watch. I tried refreshing but it didn't work. Only thing I could do to see the rates by double clicking the symbol row which opes market depth. This started happening around 2:30 PM, I tried logoff and login again, but the problem persisted there. This happened to me first time, but it is very difficult to scalp / day-trade if such problem will repeat again & again.

Can you enlist possible causes behind this, and also remedies to overcome?

Hi,

Possible causes, could be mainly internet fluctuation , let us check out and see if it happens again... You can replace the ini file to the new one if you haven't ... send us an email , will mail you the ini file which you can replace in the now folder...

and one more thing, make sure you are not running too many applications on the system you are using for NOW. Keeps your firewalls off and let NOW be the only application run on your system.. Cheers...

 

[Zerodha]

Re: Liability clause in Zerodha's agreement

@zerodha: Your "SUPPLEMENTARY AGREEMENT BETWEEN STOCK BROKER & CLIENT" says:
.

Hi Sawash,

The whole application form was taken from NSE's sample application form.. A lot of brokers use the same set... We are not into margin funding and hence never have any defaults... None of our clients have defaulted till now, not that we give them an opportunity to default... ...

I understand your concern, but as I said every word on usually all the financial account opening documents(bank account openings, trading accounts etc) usually have words which are not very sweet to the ears.... It is there because it has to be there, that is what the regulators say...

Cheers...

 

[nileshkrishna]

Hi Nilesh,

It is probably the best thing we(zerodha) are doing by sorting these issues online.... It is such a good education for everyone, as these queries are perfectly valid ones and 99.5% of people don't understand this....

About your query,

If shares are bought on monday, ideally you should get them on T+2, so by wednesday you should have it...

But what happens when the person who sold you the shares doesn't deliver them?? Exchange guarantees delivery of every single transaction, and it conducts an auction market to make good of the guy who failed to deliver... The guy who fails to deliver has to pay the fine...

Auction happens on T+3 day, hence exchange gets this share for you and delivers on T+3 day....

In your case, 200 was delivered and the person(s) who sold you the remaining 700 defaulted. Exchange will get these shares from the auction market and deliver it tomorrow...

Hope this clarifies...

Cheers....

This was nice information.But any way i can know how many shares are pending? I checked on NSDL.They have not mentioned any share under pending demat .In case i dont get shares will my money come back automatically or do I need to do something from my side? This is the first time I am facing such problem

 

[Zerodha]

This was nice information.But any way i can know how many shares are pending? I checked on NSDL.They have not mentioned any share under pending demat .In case i dont get shares will my money come back automatically or do I need to do something from my side? This is the first time I am facing such problem

Hi Nilesh,

You will get the shares in your account but after the auction... You don't have to do anything, it will show up by tomorrow end of the day...

NSDL will show only shares that come into the demat, it will not know about any pending shares or not, this is the job of the exchange to deliver shares on the auction date... It will make no difference for you, but the person who had sold you the shares and didn't deliver will be subjected to a fine...

Cheers...

 

[adi2001us]

Sachin/Zerodha

I have recd all the passwords and ILFS welcome kit etc...NOW software is working OK but I am unable to find any link to transfer fund to trading account. I want to use the NOW gateway since I have a HDFC bank account linked.....Also I am not able to find the current value of indices (say NIFTY)....Please clarify...

 

[columbus]

Hi Sachin / Zerodha

Today, I faced a lot of problems due to freezing of stock watch. I tried refreshing but it didn't work. Only thing I could do to see the rates by double clicking the symbol row which opes market depth. This started happening around 2:30 PM, I tried logoff and login again, but the problem persisted there. This happened to me first time, but it is very difficult to scalp / day-trade if such problem will repeat again & again.

Can you enlist possible causes behind this, and also remedies to overcome?

Today I too ,faced these problems,I think Zerodha is not to be blamed for
all these.There are many MEMORY intensive program running along with
NOW.Many trading software's are resource hungry.They take lot of memory.

1.TradeTiger/TTA/ODIN/PIB etc
2.Antivirus (of course ,it is a must)
3.Internet Explorer
4.Java

Sachin took some time to explain these.
Anyway Hardware persons are the correct people to talk about these.

 

[absolute.zero]

Today I too ,faced these problems,I think Zerodha is not to be blamed for
all these.There are many MEMORY intensive program running along with
NOW.Many trading software's are resource hungry.They take lot of memory.

1.TradeTiger/TTA/ODIN/PIB etc
2.Antivirus (of course ,it is a must)
3.Internet Explorer
4.Java

Sachin took some time to explain these.
Anyway Hardware persons are the correct people to talk about these.

Alongwith NOW, I only use www.icharts.in for seeing charts, that uses JAVA. Firewall is turned off. Broadband seems to be okay, and I didn't face such problems with ODIN and TTAdv earlier.

I hope for some improvements soon.