Zerodha option settlement seems fraud.

#1
Here are the details.
1. I sold the option for 'Nationalum' NATIONALUM20AUG28CE for the target of Rs.28 with a Lot Size of 17000, for Rs 4.7 premium.
2. On the closing day of the month price of NATIONALUM was Rs 37.1 per share.
3. I was not owning any shares of 'Nationalum' hence this trade went for settlement on the closing date (28th Sept). Settlement contract was closed for Rs 37.10 per share on 3rd Sept.
4. My balance with zerodha demant account was above 7 lac when I sold this trade.
5. My rough calculation are as
I sold a lot of 17000 shares at 28 = 17000*28 = 4,76,000
I got a premium of 4.7 per share = 17000*4.7 = 79900
Total = 555900
Auction contract 17000 share at 37.1. = 17000*37.1 = 630700
Net Loss 630700 - 555900 = 74800 ( addition of tax and commissions ignored )

when Zerodha settled it they debited Rs 2,66,683.71 from my account.

HERE IS ZERODAHA REPLY ON THIS TRADE
Your opening balance on 03/09/2020 - 364016.291 Cr. ( I don't know how was my balance went down to this? I was having 7 lac + in the account. I don't have any clue about this )
Auction settlement - 630700.000 Dr
Margin reversed - 756840.000 Cr

364016.29+756840-630700= 490156.291 Cr ( available balance).

Things I can't understand where is my Rs 1,91,883 is gone? is there something I am missing? I definitely know there is a fraud, I am looking help from the community to get back my money from Zerodha.

Attached are
1. Screenshot of my statement
2. Screenshot of the trade book
3. Ticket reply from Zerodha
4. Statement screenshot they shared
 

Attachments

#3
Big firms do computerised operations. it is unlikely that 'fraud' is committed. Discuss with ZD.
I did raise the ticket. earlier, first, they forgot to send me a mail of 'auction contract note'. then they replied which was nowhere near the facts. I am a computer programmer too, I know what computers can do and can't. I am certain, they have definitely done fraud, now I need the opinion of some experts from the community. to support my argument
 

cinderblock

Well-Known Member
#4
Yes, your actual loss on your trade is 74,800 only. But there are other considerations like short delivery (since you don't have shares) plus other issue. Clarify what extra charges have you paid. Short delivery charges are on the entire contract value!

  • All positions that result in you having to give delivery of shares will require you to have shares in your demat account equal to the deliverable quantity. In the event that you do not have the required quantity of shares, this settlement would result in a short delivery. Appropriate penalties shall be charged on such short deliveries. This can be as much as 20% or more. Read more on the consequences of short delivery here.
  • Margin penalties will be charged as prescribed by the exchange for all F&O positions(including long options contracts).
  • Since there is a substantial increase in effort and risk to settle these F&O positions resulting in physical delivery, a brokerage of 0.25% of the physically settled value will be charged. For all netted-off positions(spread contracts, iron condor, etc), the brokerage will be charged at 0.1% of the physically settled value.
  • As clarified by the exchange based on the direction of the Hon’ble Bombay High Court, all physically settled contracts(both Futures and Option) will carry an STT levy of 0.1%(applicable for equity delivery trades) of the contract value for both the buyer and the seller of the contract.
  • Interest will be charged at 0.05% per day if your account results in a debit balance when the additional margins are applicable(two days before the expiry day)
  • You are required to bring in funds if your account results in a debit balance after physical delivery failing which the delivered shares will be liquidated to make good of the debit balance. Interest will be charged at 0.05% per day on the debit balance in the account.
 
Last edited:

CougarTrader

Well-Known Member
#5
I definitely know there is a fraud
Raise a complaint in SEBI SCORES, they'll forward it to NSE Investor Services Cell (ISC) which you'll be able to view from NSE's NICE PLUS Platform once your complaint reference id is generated.

If not resolved within 15 days, NSE's ISC shall conduct a hearing to Investor Grievance Resolution Panel (IGRP). IGRP's order is final unless any of the party (you or Z) decides to move motion to Arbitration.

Download and read the guide from this NSE's webpage.

You can take legal help also, however, if you're confident, has done necessary due-diligence and able to present yourself, you can fight it on our own too. Note, if you fight your own case, your opponent won't be allowed to take legal help also. ;)

Be rest assured within 2-3 months you'll have resolution in case it moves to arbitration (otherwise within a month if ISC+IGRP or even in 15 days if only ISC) - NSE's Investor service acts very promptly and swiftly.

P.S. Occasionally during the weekends, SEBI/NSE website remain down due to maintenance.
 
Last edited:

travi

Well-Known Member
#6
I did raise the ticket. earlier, first, they forgot to send me a mail of 'auction contract note'. then they replied which was nowhere near the facts. I am a computer programmer too, I know what computers can do and can't. I am certain, they have definitely done fraud, now I need the opinion of some experts from the community. to support my argument
Did they ask you to read here

https://zerodha.com/z-connect/queri...delivery-derivative-contracts-update-oct-2019
the settlement details are explained in detail.

And if you are short delivery, then the auction process is here. linked in the same doc.
https://zerodha.com/z-connect/queries/stock-and-fo-queries/consequences-of-short-delivery-nse-bse
 

travi

Well-Known Member
#7
Here are the details.
1. I sold the option for 'Nationalum' NATIONALUM20AUG28CE for the target of Rs.28 with a Lot Size of 17000, for Rs 4.7 premium.
2. On the closing day of the month price of NATIONALUM was Rs 37.1 per share.
3. I was not owning any shares of 'Nationalum' hence this trade went for settlement on the closing date (28th Sept). Settlement contract was closed for Rs 37.10 per share on 3rd Sept.
4. My balance with zerodha demant account was above 7 lac when I sold this trade.
5. My rough calculation are as
I sold a lot of 17000 shares at 28 = 17000*28 = 4,76,000
I got a premium of 4.7 per share = 17000*4.7 = 79900
Total = 555900
Auction contract 17000 share at 37.1. = 17000*37.1 = 630700
Net Loss 630700 - 555900 = 74800 ( addition of tax and commissions ignored )

when Zerodha settled it they debited Rs 2,66,683.71 from my account.

HERE IS ZERODAHA REPLY ON THIS TRADE
Your opening balance on 03/09/2020 - 364016.291 Cr. ( I don't know how was my balance went down to this? I was having 7 lac + in the account. I don't have any clue about this )
Auction settlement - 630700.000 Dr
Margin reversed - 756840.000 Cr

364016.29+756840-630700= 490156.291 Cr ( available balance).

Things I can't understand where is my Rs 1,91,883 is gone? is there something I am missing? I definitely know there is a fraud, I am looking help from the community to get back my money from Zerodha.

Attached are
1. Screenshot of my statement
2. Screenshot of the trade book
3. Ticket reply from Zerodha
4. Statement screenshot they shared
the ledger trail is a bit short, but it looks like when you said you have 7L+, it includes the premium rec'd originally.
since you rec'd premium of 4.7 ( 79,900 ), your net loss was 74,800.

So 28CE at 37.1 settlement on expiry was ITM by 9.1 x 17k = 154700.
therefore this was going to be the net outgo.
 

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