Zerodha Order Problem - Updates

#1
I have mentioned the problem in Zerodha's thread. It went through various channels and the verdict has gone against me. There are further options available and I have not yet decided whether to follow them.

Here I will recount only the facts.

On 28th Sept, a series of bracket orders were executed in my account which resulted in me being left over with an overnight position in BoB futures. At that time I had a pending bracket order which should have been cancelled after 3:20.

Anyway, the position was carried on overnight and squared off by them on Monday morning at a loss of 12,400. Then I was charged call-n-trade charges both the ways, and a short margin penalty.

Here is the order book of the three orders.

1541937709376.png


I complained to SEBI about it, who passed it to NSE, Vadodara, who handled it. Zerodha offered me a compensation of Rs. 2800 which I refused. Then the matter was passed to IGRP, which met on 31st October at Vadodara. I was unable to attend it in person due to family issues but participated in a limited way through telephone.

My position was that I had not bought the scrip, I had not sold it, so I there is no liability on me.

Zerodha's representative said that I was an experienced trader and should've squared off the position on Monday morning for minimum loss. They also said that I modified the order multiple times which caused a technical glitch and caused multiple bracket orders to happen.

The IGRP passed the following order.

1541937977063.png



NSE has sent me forms for the next level, if I want to escalate it. This is called Arbitration and is a quasi judicial process.

If anyone here knows about the arbitration proceedings, please tell us all about it. How often does it meet ? How does one choose the arbitrator ? How much does it cost ? How binding are its orders etc...
 

pannet1

Well-Known Member
#2
quoting from the link.

The next step is the exchange’s arbitrator. But there are both conditions and costs involved in this. The good news is that arbitration services for claim amounts under Rs 10 lakh are free. Besides, if you win the case, no charges are claimed from you. The deposit amount for claims higher than Rs 10 lakh starts from from Rs 13,000 and can go up to Rs 90,000. Deposit rates also rise for claims made six months after the trade has taken place.
I have mentioned the problem in Zerodha's thread. It went through various channels and the verdict has gone against me. There are further options available and I have not yet decided whether to follow them.

Here I will recount only the facts.

On 28th Sept, a series of bracket orders were executed in my account which resulted in me being left over with an overnight position in BoB futures. At that time I had a pending bracket order which should have been cancelled after 3:20.

Anyway, the position was carried on overnight and squared off by them on Monday morning at a loss of 12,400. Then I was charged call-n-trade charges both the ways, and a short margin penalty.

Here is the order book of the three orders.

View attachment 30428

I complained to SEBI about it, who passed it to NSE, Vadodara, who handled it. Zerodha offered me a compensation of Rs. 2800 which I refused. Then the matter was passed to IGRP, which met on 31st October at Vadodara. I was unable to attend it in person due to family issues but participated in a limited way through telephone.

My position was that I had not bought the scrip, I had not sold it, so I there is no liability on me.

Zerodha's representative said that I was an experienced trader and should've squared off the position on Monday morning for minimum loss. They also said that I modified the order multiple times which caused a technical glitch and caused multiple bracket orders to happen.

The IGRP passed the following order.

View attachment 30429


NSE has sent me forms for the next level, if I want to escalate it. This is called Arbitration and is a quasi judicial process.

If anyone here knows about the arbitration proceedings, please tell us all about it. How often does it meet ? How does one choose the arbitrator ? How much does it cost ? How binding are its orders etc...
 

Romeo1998

Well-Known Member
#3
Hello Sir, I dont know much about SEBI rules but there is a very good NGO , its name is chintalessnagrik , its website is http://chintalessnagrik.com/ they r on facebook n whatsapp too n they reply within minutes. I had taken help from this NGO when I had faced problem from amazon online shopping, after contacting them in just 2 days i got my refund without any problem.
They are helping people for free to settle all sorts of online disputes. For court cases, etc they charge some amount. Best of luck :)
 
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#4
Hello Sir, I dont know much about SEBI rules but there is a very good NGO , its name is chintalessnagrik , its website is http://chintalessnagrik.com/ they r on facebook n whatsapp too n they reply within minutes. I had taken help from this NGO when I had faced problem from amazon online shopping, after contacting them in just 2 days i got my refund without any problem.
They are helping people for free to settle all sorts of online disputes. For court cases, etc they charge some amount. Best of luck :)
Yes, it looks like a paid site. Good option to have, though.

Yes, but there is some confusion about the costs. On one hand it says that claims upto 10 lakhs are processed free, and on the other hand it says something about a deposit, and no mention of deposit refund etc.

Has anyone here gone through the arbitration process ?

I just want to get the point across to the deciders that it wasn't my trade at all and I wasn't responsible for squaring it off. I didn't even have enough funds for an overnight position.
 

TradeJoker

Well-Known Member
#5
I think this issue should taken seriously, as this forum is one of the first trading forum and TP Bhai is a well known member and contributor, Zerodha and other discount brokers got enough reach by this forum, if a member like TP Bhai in trouble, there's more chance other members too under threat by these kinds of issues, hope the MD will directly solve this problem as the integrity of a broking firm is important than anything.
 
#6
I think this issue should taken seriously, as this forum is one of the first trading forum and TP Bhai is a well known member and contributor, Zerodha and other discount brokers got enough reach by this forum, if a member like TP Bhai in trouble, there's more chance other members too under threat by these kinds of issues, hope the MD will directly solve this problem as the integrity of a broking firm is important than anything.
Thanks. I would rather this issue is taken up by the other members more as a systemic issue rather than an individual one. If it can happen with one, it can happen with the others too. Maybe tomorrow someone else would have a bracket order in his account after 3:20; maybe tomorrow instead of a Rs. 85000 trade, it would be Rs. 85 lakhs trade, and negative margin penalty for that. They levied me short margin penalty of Rs. 806 for 3 days for this trade. Just imagine if 2-3 zeroes got added ??
 
#7

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