FYERS

[anildnr]

It's not about 40 to 50 brokers are also there. When we have some alert warning with ILFS, why we were not taken any precautions to switch to some other

 

[Newbie Day-Trader]

Please refer to our latest notice.

You skipped my post. How to reset backoffice password?

 

[Prashant2810]

You skipped my post. How to reset backoffice password?

Yes, can reset your password by going into admin tab.

 

[sach007]

I have one question @Tejas Khoday I have pledged Liquidbees with ILFS through you what would I do?

Can I sell them directly?

Or I need to Unpledge and then sell?

Are they safe in pledged state?

 

[Newbie Day-Trader]

Yes, can reset your password by going into admin tab. View attachment 36565

I would need to be able to log into the backoffice to do the above but the problem is that I'm unable to log into the backoffice.

 

[sach007]

I would need to be able to log into the backoffice to do the above but the problem is that I'm unable to log into the backoffice.

BRo write mail to support.. they will reset

 

[Newbie Day-Trader]

BRo write mail to support.. they will reset

Yeah, did that but there should be a way to do it on our own, through forgot-password link or something.

 

[Tejas Khoday]

I am glad I continued with my Sharekhan broker for delivery trades without opening DP account with IL&FS as I did not feel safe using IL&FS demat after their exposure to massive debts. How did Allied financial end up using clients collateral? Aren't clients accounts segregated from company's account?

Hi @bull375,

1. There is no issue with your DP holdings or buying & selling "Equities" either for intraday or delivery. If any client has any holdings in the demat account, they can sell it and you will get your funds, as usual.
   
   
2. You can also trade in other derivatives such as Currency & commodities, as usual without any changes.
   
   
3. The issue pertains to NSE F&O segment only. Basically, NSE has blocked a certain amount from IL&FS and are not allowing them to liquidate collateral pledged. The collateral belongs to Dalmia Bharat and it has been pledged by their broker Allied Financial to take short positions in Bank Nifty & perhaps other derivatives. Upon losing money on the trade, the collateral has to be liquidated and trade needs to be settled. In this case, the matter is on hold as Dalmia Bharat filed a suit against them and the matter just got blown out of proportion. This in brief. We don't know if Allied Financial pledged and took trades on behalf of the client or without consent. Whatever the case may be, NSE's Clearing Corporation must ideally step in and guarantee the settlement of trades, do the needful and the show must go on.
   

With regards to your doubt relating to how Allied Financial can pledge the client's securities: Brokers do all sorts of things. Ideally, the shares should be stored in the clients' beneficiary accounts and the broker should not touch it. But many of them who do proprietary trading, end up using client funds/securities to trade. This seems to be one of those cases. I can't comment beyond as I have limited information regarding the details. I reserve the right to be wrong and I am neither blaming Allied Financial or Dalmia Bharat.

How we do things differently:

1. We ensure that client's demat holdings are stored in the client beneficiary accounts and not the broker's pool accounts. This reduces the chances of mismanagement to a very large extent.
   
   
2. We don't do proprietary trading activities and thus, do not take a risk in our business entity which may jeopardize the safety of clients' funds/securities.
   
   
3. We do not give aggressive leverage beyond sustainable levels. This is to ensure that we operate at a margin of safety.

 

[Tejas Khoday]

It's not about 40 to 50 brokers are also there. When we have some alert warning with ILFS, why we were not taken any precautions to switch to some other

We have already taken the precautionary measures a long time ago. However, there is process and procedure to be followed before one can shift a clearing member because it involves live positions and funds. Moreover, as the article mentions, IL&FS has not been giving NOCs to everyone at the same time. Please note that as per the regulations, a broker can be associated with only one clearing member and hence, we must first get out of one before shifting to another.

The MD of NSE, The MD of NCL (NSCCL), MD of IL&FS and the core community is totally aware of this and we are doing the needful at our end. I will write about this soon. There is no need to worry as the process is almost complete.

 

[Tejas Khoday]

You skipped my post. How to reset backoffice password?

Hi @Newbie Day-Trader, Kindly send an email to [email protected] asking to reset your back office password. Upon getting the new back office, we'll try and implement a self-help way of resetting passwords just like it is available on Fyers Web.