Day Trading Stocks & Futures

[iwillwin]

Zerodha saying they had large debits in commodities broking operations and they are trying to recover that debit from their clients...the debit is about Rs 10 Cr or 10 % of its networth......but all that is not bad debt...but tough days ahead for Zerodha.....

is it safe to trade with zerodha...if broker has to pay to mcx client money is safe I hope if they have no pending payment

 

[vikas2131]

Zerodha saying they had large debits in commodities broking operations and they are trying to recover that debit from their clients...the debit is about Rs 10 Cr or 10 % of its networth......but all that is not bad debt...but tough days ahead for Zerodha.....

They will be ok. Last year they made like 300 cr if i remember correctly.

 

[Sidz]

In case the broker like Zerodha goes bankrupt, what is the insurance value of such cases?

 

[Smart_trade]

10 Cr is not a large amount which will put Zerodha in a spot...but hope there are no further losses.

 

[lemondew]

The details for zerodha are mentioned here. Also all broker mostly must have bifurcated mcx and nse into different companies. Not sure if the impact of mcx would be felt on nse company. The net worth of zerodha nse one would be much more. the two should be treated as different entities in my opinion. we should all be alert on which brokers have big exposures and stay alert.


The details are put here.
https://tradingqna.com/t/the-crude-episode-the-risk-of-running-a-brokerage-business/75479

 

[Smart_trade]

Kotak Bank coming out with FPO of 65 million shares....though Kotak does not need any money for lending, this FPO will help reducing their promotors stake as required by SEBI.

 

[lemondew]

Some lines from the article

"There are around 300 commodity brokerage firms who offer trading in Crude oil contracts. A few small firms are bound to go bust without having sufficient money to pay up for the loss. We’ll only get to know tomorrow about who will be able to survive this episode. "

Also we would need to know if this would affect the equity part....

 

[iwillwin]

600 crore networth of equity side zerodha

 

[imurvrtrader]

what if a client fails to pay his loss/dues etc. (even after adjusting margin money, demat holding). is there a way (with broker) to recover such amounts or they are suppose to bear it a business loss.

 

[Smart_trade]

what if a client fails to pay his loss/dues etc. (even after adjusting margin money, demat holding). is there a way (with broker) to recover such amounts or they are suppose to bear it a business loss.

They can file for arbitration in stock exchange against a client and also a civil suit for recovery of dues....but both take long time.