Timely update from Zerodha…Even a layman can understand…
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I started a new topic to ask some questions on PoA (Power of Attorney) provided to brokers and alternatives to it.
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Hello everyone, just want to know if someone opened a trading account with Bajaj Financial securities?
Please share your overall experience if any.Thanks in advance
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Hi guys,
So this happened to me last month. It is a matter of 1 Rs. but I share this here to know if anyone else has noticed a similar occurrence.
I was going through my recent fund statement and found a charge of 1.1 Rs for delayed payment. Going back in history I found that apparently, my account was in -88 rs. for a month because of AMC charges. I was surprised to see this as I always keep some extra money in the trading account.
The opening balance on the statement was 1400+ Rs. and just before the AMC charge debit, Zerodha debited my account for MF purchase on the same day which left 0 money in the account for AMC payment.
I am not crying foul play here, and I understand that brokers are mandated by SEBI to either transfer the money that is left in the trading account to the bank or overnight MF at the end of every quarter. However, this was done on 06/Nov/19 while the quarter ended on 30/Sep/19, why so late? This money of 1400+ has been in the trading account for 5 months and 3 days. The end of Q2FY20 went by in between and money was not moved from the trading account.
To the best of my knowledge, I do not remember placing the purchase order for this overnight fund. I normally leave some money in the trading account exactly for the reason of AMC charge debits. Giving the broker a benefit of the doubt, it is in the realm of possibility that such a coincidence occurred where I moved the money to the overnight MF just before the AMC charges had to be debited.
That said, this is the 1st time I have noticed this, and I will be monitoring this from now on. If anyone else has noticed similar occurrence please do share.
I have written to zerodha with my suggestion to please implement a system of notifying the account holder of upcoming AMC charges and whether the account will maintain +ve balance or not post the transaction. Also, if the overnight MF purchase was an automated process by the broker, please implement a system of charging the AMC first and then moving the money to the overnight MF, provided if both events coincide on the same day, as was my case.
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We’re working on fixing this. From the next quarter, all of this will be handled by a system that will ensure that AMC is posted before quarterly settlement.
Since this is due to no fault of yours, please PM me your client ID. Will have it reversed. 
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It will be good to check if SEBI mandated transfer of money left in trading account to overnight MF.
@Gaurav_Agarwal SEBI mandates that funds should be send back to bank account. The overnight fund bit was always grey. However, in a recent audit, exchanges asked us to review this option we afforded our clients as it wasn’t clear how SEBI would construe it. We’ve since changed our policy and stopped offering this option. Nithin has explained this in more detail here.
Thanks for the prompt reply Nikhil. Good to see that the issue is already being worked on. Amount is insignificant to prompt a refund. Thanks for the gesture anyways. Will wait for the next quarter to see the changes in the system.
@Nikhil.A Just initiated a zerodha idfc first bank 3-in-1 account on my spouse name. as per my understanding there is no need to sign a POA now for share transaction and there is an alternate way to authorize zerodha for any sale of shares (https://support.zerodha.com/category/account-opening/online-account-opening/articles/why-can-t-i-send-a-soft-copy-of-the-power-of-attorney-poa ). But was asked to sign a common POA which includes share transaction authoritarian as well as fund transfers from IDFC First. is there any POA only to authorize for IDFC First transactions and not DEMAT shares (which can be done via alternate method)?
Hi, does anyone know what are the processing fees by the brokers for SLB lending ?
The 3-in-1 account still needs a PoA, I’m afraid. Working with IDFC to figure out a non-PoA route to do this, but it’ll take some time for that to go live.
few updates after I opened zerodha 3-in-1 account and tried fund transfer feature.
3-in-1 account does not give any additional benefits if some one thinking in the line of ICICIdirect or other 3-in-1 accounts.
-funds can be transferred but you can not withdraw immediately. No any time transfer from trading to bank even though you have not used the funds.
-Not allowed to transfer back for at least one day after transfer from bank to trading account. after that you can request for withdrawal which is done end of the day. so up to 2 days it takes to come back to your account.
so not seeing any use of having IDFC first bank account , if your current bank allows free IMPS/UPI, thats good enough.
Till they add anytime(and real-time) transfer of funds from trading to bank. 3-in-1 using IDFC first bank does not seems needed.
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The above is true even for Kotak Securities - you have to place a request to transfer money from the trading acct to the Bank acct. ICICIDirect is of course, different.
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And what about HDFC securities? Whether they have similar facility as icicidirect?
checked with one of the HDFC securities user. They have auto allocation and de-allocation of funds from linked HDFC bank for the transactions. no need to manually transfer funds.
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Zerodha Trading Account - apart from good/bad what has already been shared on this thread earlier, sharing some more recent experiences to reinforce some of the negatives before anyone considers signing up with Zerodha:
- Trading Account Access Failure - Suffers from way too many technical glitches too frequently - last one as recent as this Monday 13th April - Market opening from 9am to 9:45am, no access to your account, trades, zilch.
- Trade failure / Money Lost - Trade failures during market closing across multiple days in March between 3:15pm to 3:30pm when placing trades. The trade placed would just show some network response error and then not get automatically cancelled - instead will get placed 30 seconds to minutes later automatically
- Fund Access Failure - Takes days and days to access your own funds. I have zilch access to my own funds i.e. shares sold last Wednesday i.e. 8th April. Expect to get funds in my bank account tomorrow - 1 full week later and 3 trading days have elapsed since. RBI has made NEFT/RTGS 24x7 and Zerodha has some special banking partner for which this 24x7 service doesn’t work.
Zerodha truly lives up to its promise…Zero brokerage*
*Conditions applied - Zero service!
PS: Plan on one day doing a cost benefit analysis of staying with Zerodha. Might be heading negative very soon
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This is an old post, but I feel I should say that this statement:
is incorrect, or at least incomplete. One can do the online delivery oneself, using SPEED-e (NSDL) or EASIEST (CDSL). A POA is not required. However, all brokers I’ve ever spoken to have forgotten to mention this option. And I’ve read in multiple places that if you ask brokers for this option they will refuse.
However, I spoke to three brokers here (JG Shah Fin. Con., Prabhudas Lilladher, Standard Chartered) and to my surprise none of them had a problem with it, though SC insisted that I cancel an existing POA before I could use SPEED-e. Go figure.
I think the broker POAs are inherently problematic, because the language used is excessively general and therefore very abusable. At least the ones I have read have all had very general language. Maybe the broker won’t abuse it, but do you really want to take that chance?
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Hello,
I have zerodha account for the past 2 years and i am satisifed with my account as i do no trading and not affected by overload issues until now. Service is fine in case of any issues.
But after corona, i consider risk management and back up with high priority. For another account, i consider Upstox or finvasia. I see no negative comments for both of them in this thread. Can anyone share further insights or any preference out of these 2 brokers with reason. Thanks.
I’ve given Zerodha quite a bit of stick in the past, so I must also acknowledge excellent steps like this which removes the need for clients to give a POA whenever opening their trading and demat account with Zerodha.
And it’s great to see they’ll soon include this facility for all clients who have opened their accounts by giving POA.
“This process isn’t applicable for our customers who have submitted the POA (accounts opened before Nov 2019). We will soon allow these customers to revoke the POA and shift to this new e-DIS process.”
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