What is TOWER RESEARCH CAPITAL Doing here with YES BANK ?

#1
Hello,
I have been a long term holder of YES BANK(16 months), & MY secondary broker ICICI direct emails me on the bulk deals that are going on the stock that are currently in my portfolio.
So, Direct has been emailing me about the bulk deals of this company TOWER RESEARCH CAPITAL which is I guess trading YES BANK in bulk, But I don't really understand what's going on ?

Screenshot (95).png

This image shows their recent deals on yes bank stock.

So they are buying enormous amounts of shares & selling them with a difference of 3 paisa, 7 paisa ?
-- Is this profitable ?
-- What about their Brokerage ?
-- Who is buying from them these amount shares ? (Who are they selling these shares too?)
-- Are they actually driving the price low ?
-- Is it possible that they are doing this just to manipulate the share ?

I would be really grateful if you can help me find those answers & enlighten me.

Regards.
Akamai.
 

bpr

Well-Known Member
#2
not an expert on the subject matter but if I have to take an educated guess
looks like the broker is facilating a trade between buyer and seller. The spread is necessary for the broker to make some money.
Broker is represting themselves as both buyer and seller to exchnage. as per law these trade have to be disclosed.
The actual buyer and seller remain anonymous. which is why they don't mind paying the broker.

For broker it is an intraday transaction. If I punch the number of the first trade into zerodha brokerage calculator ...the broker made 40k after STT and exchnage transaction charge.
I think the figure will be little better becuase for bulk transaction exchange charge will be much lesser than we retail people.

1565177034727.png



but wait a second the trade is delivery type for the actual buyer and seller ...by doing this they never show their delivery trade as delivery instead intraday ...and save tons of STT(as delivery STT much higher than intraday STT)

is this a legal loop hole ??
 
#3
but wait a second the trade is delivery type for the actual buyer and seller ...by doing this they never show their delivery trade as delivery instead intraday ...and save tons of STT(as delivery STT much higher than intraday STT)

is this a legal loop hole ??
I Think so too!
Additionally, The STT is really non-existent for intraday, but for delivery it's like 15% on profit.
This indeed maybe a loophole because transfer of this much amount of shares between two parties directly can take some time increasing the STT.
So, Broker(Tower research capital) came up with an idea to save tons of STT.

Also, @bpr Thanks to you, I just realized that TOWER RESEARCH CAPITAL is indeed a broker or maybe a facilitator for bulk deals on Equity.
That would explain a lot of stuff going on here.

Regards.
 

trendtrade

niftytrader12
#4
not an expert on the subject matter but if I have to take an educated guess
looks like the broker is facilating a trade between buyer and seller. The spread is necessary for the broker to make some money.
Broker is represting themselves as both buyer and seller to exchnage. as per law these trade have to be disclosed.
The actual buyer and seller remain anonymous. which is why they don't mind paying the broker.

For broker it is an intraday transaction. If I punch the number of the first trade into zerodha brokerage calculator ...the broker made 40k after STT and exchnage transaction charge.
I think the figure will be little better becuase for bulk transaction exchange charge will be much lesser than we retail people.

View attachment 36924


but wait a second the trade is delivery type for the actual buyer and seller ...by doing this they never show their delivery trade as delivery instead intraday ...and save tons of STT(as delivery STT much higher than intraday STT)

is this a legal loop hole ??
Thanks for the interesting information.
 

chintan786

Well-Known Member
#5
Tower research is Quant/trading company. they regularly hire quants, Engineers etc. these trades done by those routes only. I think it is Based in Gurgaon in India and also have offices elsewhere in the World. they are known pay huge salaries to their employees.
 

chintan786

Well-Known Member
#6
to make 40k this is risky thing to do.. can make good money in options easily.
 

MSN1979

Well-Known Member
#7
to make 40k this is risky thing to do.. can make good money in options easily.
Since 1 tick is 5 Paisa how come the average is .3 also how come they get so much liquidity within 5 to 6 Paisa. If we check the traded are squared of nearby, so they are not waiting that long. Also I am thinking they have more data available then average trader. There is no way this many shares get traded. Anyone checked what's the average volume of yes bank for a day?
 

bpr

Well-Known Member
#8
not an expert on the subject matter but if I have to take an educated guess
looks like the broker is facilating a trade between buyer and seller. The spread is necessary for the broker to make some money.
Broker is represting themselves as both buyer and seller to exchnage. as per law these trade have to be disclosed.
The actual buyer and seller remain anonymous. which is why they don't mind paying the broker.

For broker it is an intraday transaction. If I punch the number of the first trade into zerodha brokerage calculator ...the broker made 40k after STT and exchnage transaction charge.
I think the figure will be little better becuase for bulk transaction exchange charge will be much lesser than we retail people.

View attachment 36924


but wait a second the trade is delivery type for the actual buyer and seller ...by doing this they never show their delivery trade as delivery instead intraday ...and save tons of STT(as delivery STT much higher than intraday STT)

is this a legal loop hole ??
follow up post ..
The actual buyers and sellers can indeed do bulk deals with themselves without any broker. The broker is not required at all.
here is a example of bulk deals I fetched from moneycontrol.
Here u can see the buyers and sellers actual name. No broker involveled.
But if you see the list most of these bulk deals are done thorugh brokers.
That tells u something

1565361398749.png
 
#10
Tower research is Quant/trading company. they regularly hire quants, Engineers etc. these trades done by those routes only. I think it is Based in Gurgaon in India and also have offices elsewhere in the World. they are known pay huge salaries to their employees.
Very interesting & informational, they must be making Reasonable amounts on this sort of trading.
Also, i thought the days of quants were over because of surge on the computation & cloud storage facilities these days for HFT, but turns out some mysterious firms still running the show with their help!
 

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