Zerodha is a member of the National Stock Exchange, Bombay Stock Exchange, MCX-SX and Multi-Commodity Exchange in the Equity, Equity Derivatives segment, Currency Derivatives segment and Commodity segment having its registered office at #153/154, 4th Cross, Dollars Colony, Opp. Clarence Public School, J.P Nagar 4th Phase, Bangalore - 560078, Karnataka, India.
For the purpose of these Policies & Procedures, wherever the context so mentions "Client","You" or "Your", it shall mean any natural or legal person who has agreed to open an account or initiate the process of opening an account with Zerodha by providing their information while registering on the platform as a user. Zerodha allows any person to surf the website without registering on the website. The term "We", "Us" , "Our" and "Team Zerodha" shall mean M/s Zerodha and/or Zerodha Commodities Pvt. Ltd.
Payin: Clients can transfer funds into the Trading Account only from such bank accounts which are registered with Zerodha. Any transfer from a non-registered bank account will not be considered and the client does not get any trading limit credit for such transfers.
The client can transfer funds from the instant payment gateway facility available on the trading platform or on the backoffice. Such transfers will be charged at Rs 9/- per transfer.
If a client chooses to transfer using NEFT or by means of cheque, there will be no cost.
Payout: All payouts will have to be compulsorily placed on the Backoffice access provided to the clients. All payout requests will be processed electronically and the credit shall come to the client’s primary bank account within 24 hours of having processed the payout request.
The payout window for EQ/Currency is before 7:30 PM every day - requests placed before 7:30 will be honored the next day. Requests placed after 7:30 PM will be honored in two days.
The payout window for Commodities is 9:00 AM every day - requests placed before 9:00 AM will be honored on the same day. Requests placed after 9:00 AM will be honored the next day.
Payout windows are closed on Saturday and Sunday - this means if you place a request on Saturday or Sunday or after 7:30 PM on friday, it will be honored only on Monday.
Client Funding: Zerodha does not engage in the business of Client Funding. Clients are required to have sufficient balance in their accounts to hold/carry forward positions.
NSE/BSE Equity: Zerodha has a policy of giving up to 20 times exposure on a broad spectrum of stocks; no margin is given for delivery trades. The client needs to have enough money in his trading account to take delivery of shares failing which Zerodha can cut the position. Comprehensive real-time margins at Zerodha can be viewed here.
NSE/BSE/MCXSX Futures and Options: Zerodha does not engage in the business of Client Funding. Clients are required to have sufficient balance in their accounts to hold/carry forward positions.
NSE/BSE/MCXSX Futures and Options: Leverage provided here is subject to market conditions and changes in its proportion are dynamic. Currently 40% of Total margin (Span+ Exposure) is required to trade intraday (MIS) and 100% of Total margin (Span+ Exposure) is required to carry forward (NRML) positions. Comprehensive real-time margins at Zerodha can be viewed here.
NSE/MCX-SX Currency: 40% of total margin (Span+Exposure) is required to trade intraday (MIS) and carry forward positions will require 100% of Total Margin (Span+Exposure).
MCX Commodities: Intraday (MIS) trading is allowed in all Non Agri products sans Brent Crude and Silver 1000. Leverage provided is subject to market conditions and changes in its proportion are dynamic. Currently 40% of SPAN is required to trade intraday. Carry Forward (NRML) positions require 100% SPAN
Cover Orders: Currently available for NSE/BSE/CDS Equity and FO typically the margin benefit under this is higher relative to MIS positions.
Intraday products (MIS/BO/CO) square off timings:
Item | Equity/Cash | Futures | Currency futures | Commodity |
---|---|---|---|---|
Intraday Margin Time (MIS and CO) | 9:15 to 3:20 | 9:15 to 3:20 | 9:15 to 4:30 | 25 minutes before Close |
If any intraday position or an MIS trade is not squared off on the same day due to any link or system failure or any risks associated with internet/wireless based trading which may occur at the end of the Client, Zerodha or the respective Exchange, it shall be treated as a Cash and Carry ("CNC") or NRML position and carried forward to the next trading day. In case of such a situation arising, the onus of squaring off the position will be on the Client. Our RMS desk shall square off any such position, without the requirement of a margin call, if the necessary cash is not available in the Client's account.
Margin policies: The margin policies for trading through Zerodha can be obtained by clicking on this link
All information mentioned here is subject to change at the discretion of our Risk management team.
Zerodha follows the practice of posting the settlement obligation towards their transaction in the client ledger on the settlement date. All clients are advised to make the payment before the pay-in time on the settlement day, though there are instances wherein client may delay the payment beyond the settlement date. Although, it is obligatory for a broker to meet the settlement obligation in time, therefore, in order to ensure timely receipt of funds from clients towards their payment obligation, “charges for delayed payment” are levied in the client’s account. The sum towards “charges for delayed payment” is levied to discourage delayed payment from clients who do not deposit the required sum of money before the payin time on the payin day. “Charges for delayed payment” are levied on the respective ledger debit of the clients at a rate of 0.05% per day of the debit balance in the account. For the purpose of reckoning debit balance, the debit balance in the client ledger is consolidated across all segments of the respective exchange after giving effect to the release of margin.
In the Equity Derivative Segment and Currency Derivative Segment, we accept the approved securities from clients for margin purpose. Exchanges stipulate that for overnight F&O positions, 50% of the margin needs to compulsorily come in cash and the remaining 50% can be in terms of collateral margin. If you don’t have enough cash, your account will be in debit balance and there will be an interest charge also called delayed payment charges of 0.05% per day applicable on the debit amount. So assume you take positions that require a margin of Rs 1 lakh, you will need at least Rs 50,000 in cash irrespective of how much collateral margin you have. Assuming you don’t have this Rs 50,000, whatever you are short by will be the debit balance for the day, and interest will be applicable for that amount. Liquid bees are considered as cash equivalents by the exchange, so the above 50% rule wouldn’t apply. So margin received from pledging liquid bees will be as good as having cash in your trading account. Check this blogpost if you have any queries regarding pledging.
Zerodha will issue contract notes & margin statements to its clients within 24 hours of the trade taking place. Along with the Contract Note, the client shall also be furnished with a copy of the daily margin status which is also available to be viewed on their respective Backoffice Personal Ledger.
Zerodha will maintain client’s securities in a designated account called the Client Beneficiary Account. The securities of Zerodha will be kept in a separate demat account termed as Zerodha Beneficiary Account. The clients’ and Zerodha’s own securities will not be mixed with each other.
Zerodha will open all DP Accounts with its DP Partner IL&FS Securities Services Ltd. A client has the facility of linking his existing Demat Account to the Trading Account and taking delivery of stocks or opening a new Demat Account with Zerodha’s DP Partner, IL&FS Securities Services Pvt. Ltd. A client who wants to fully engage in trading in the Delivery Segment of NSE/BSE, will have to compulsorily open an account with IL&FS Securities Services Ltd. Transfer of shares from a third-party Demat account in to Zerodha’s pool account and subsequent selling of such stocks is not allowed.
The trades of clients shall be carried out in the respective client code only. The dealers shall take utmost care while executing the trades of the clients regarding the accuracy of Client Code, Quantity, Price, etc.
The Clients account shall be closed upon a specific request from the client. The closure shall be effective only after a period of one month has elapsed from the date of application/intimation or the date of settlement of account whichever is later.
Settlement of account shall mean that there is no outstanding balance of shares or funds in the books of the client and Zerodha and the same is confirmed by the client. The date of confirmation shall be the effective date of settlement. As far as dormant accounts are concerned, we do not close such accounts, but mark the same as “Inactive” till further action by the concerned client.
The Compliance Officer shall be the designated officer for handling the Investors Grievances and Client Complaints. The email ID you can write to in case you have any grievance is [email protected].
The resolution of the Complaint shall be done at the earliest and the same shall be recorded in the register along with the date of resolution.
The Prevention of Money Laundering Act, 2002 came into effect from 1st July 2005. Necessary Notifications / Rules under the said Act were published in the Gazette of India on 1 st July 2005 by the Department of Revenue, Ministry of Finance, and Government of India.
SEBI vide circular dated 18th January 2006 required Market intermediaries to lay down policy framework for anti money laundering measures to be followed. Zerodha being a Stock Broker needs to adhere to the same. SEBI has also issued a Master circular dated 19th December 2008, which consolidates all the requirements/obligations issued with regard to AML/CFT until December 15, 2008
Money laundering has now become one of the major concerns of international financial community. Money Laundering is not just an attempt to disguise money derived from illegal activities. Rather, money laundering is involvement in any transaction or series of transactions that seek to conceal or disguise the nature or source of proceeds derived from illegal activities, including drug trafficking, terrorism, organized crime, fraud and many other crimes.
The objective is to have a system in place for preventing any money laundering financial transaction through us and also to identify, monitor, report any such transaction to appropriate authorities.
“Know Your Customer “(KYC) is the guiding principle behind the Anti-Money Laundering (AML) measures. It incorporates the “Know Your Customer” Standards & “Anti Money Laundering” Measures, hereinafter to be referred as “KYC Standards” and “AML Measures ". The objective of is to “have in place adequate policies, practices and procedures that promote high ethical and professional standards and prevent the Company from being used, intentionally or unintentionally, by criminal elements ". KYC Standards and AML Measures would enable the Company to know/ understand its customers, the beneficial owners, the principals behind customers who are acting as agents and their financial dealings better which in turn will help the Company to manage its risks prudently
The management of the company is fully committed to establish appropriate policies and procedures for ensuring effectiveness and compliance with respect to all relevant legal requirements.
An officer of the company will be designated as “Principal Officer” who will ensure proper discharge of all legal requirements with respect to the same Mr. Venu Madhav, Compliance Head is the Principal Officer responsible for
The main aspect of this policy is the customer due diligence process which means:
The customer due diligence process includes three specific parameters:
The principal officer shall report the nature, amount, date and all related details of any and all suspicious transactions recorded.
Before opening any Trading account with us, the following measures shall be taken:
All corporate clients must submit annual report every year. In case of individual clients, Client Master details shall be sent to all clients, who will confirm either that the details are updated or shall be advised to submit details if required. He shall also specify his present occupation and financial income details per annum in the same declaration.
The information should be adequate enough to satisfy competent authorities (regulatory/ enforcement authorities) in future that due diligence was observed by us in compliance with the Guidelines.
Failure by prospective client to provide satisfactory evidence of identity should be noted and reported to the principal officer.
Further, we should also maintain continuous familiarity and follow-up with the client where inconsistencies in the information provided are noted.
The account will not be opened where we are unable to apply the above KYC policies, e.g., non co-operation of the client in providing full information etc
Each client will be marked into 3 categories, High Risk, Medium Risk and Low Risk from the point of view of the anti money laundering laws. The categorization will be made based on the following parameters/ factors of risk perception:
The clients will be placed under low, medium and high-risk category based on their turnover per day. Corporates / HNIs having respectable social and financial standing, Clients who make payment on time and take delivery of shares can be considered as Low
SEBI and other authorities suspend or debar persons / entities from participating in securities market on several instances. We as a Broker are required to ensure that such persons do not trade through us.
We shall lay down systems for identifying transactions which is not in consonance with the financial status declared/ shown by the client. Also, unusual activities compared to past transactions, sudden activity in dormant accounts, activity inconsistent from declared business activity, should be traced. This shall require appropriate changes in our back office software.
Systems shall be put in place for identifying transactions likely to be market manipulation, and which appears to be insider trading and also any transaction which seems to have no bonafide intention. Regular communications by means of mailers, SMS, Email are sent to clients at various intervals requesting them to update their latest financial and KYC details available with us.
Role of Compliance Team & Internal Audit: The compliance team will play an important role in ensuring compliance of the above policies and procedures. The account opening team will exercise adequate due diligence as stated above. There will be periodic checking by the Principal Officer and the same report will be properly filed
here is a system of concurrent audit, which will also include ensuring compliance of the
The Exchanges specifies a list of Illiquid Securities where higher due diligence is to be exercised by the Brokers. The list is displayed in our website for client's information. The trade pattern in such scripts by our clients is monitored. In case of high volume in any script compared to Exchange volume, the client is asked to submit clarification.
We have policy for ongoing employee training programme so that the total staffs of our company completely aware of the provisions of AML and CFT procedures and amendments thereof. These training programmes are totally focused for frontline staff, back office staff, compliance staff, risk management staff and staff dealing with new customers as it is very crucial that all those concerned fully understand the rationale behind these guidelines, obligations and requirements, implement them consistently and are sensitive to the risks of their systems being misused by unscrupulous elements, if there is any lapse on the part of any staffs of the company.
A register of attendance of participation in such Education/ training program is maintained for the employees, kept secured with the Compliance Department.
As resolved Zerodha shall take adequate measures as per its internal policy to prevent money laundering and shall also put in place a frame work for PMLA policy. The policies and procedures as mentioned above shall not be final as it may adopt additional measures to safeguard its interest with respect to activities associated with PMLA.
Zerodha has introduced the concept of discount broking in India. This concept is very popular in the US with companies like Ameritrade, Zecco, etc. Our focus is on helping traders stay ahead of the rest of the pack by offering innovative solutions to the problems that exist in the trading domain.
We decided to create Zerodha based on an in-depth understanding of how the odds are always stacked against active traders in the financial markets. A study conducted by us revealed that almost 90% of active traders in the markets lose money in the long run. One of the fundamental drivers that define this reality is the fact that brokerages in India have always charged traders a percentage brokerage, regardless if one makes or loses money on a particular trade. This insight inspired us to create a whole new way of trading.
Since last December Zerodha has gone zero brokerage for Equity Delivery trades. Yes, EQ delivery is free. For other trades like EQ Intraday, F&O, Currencies and Commodities, you pay a simple 0.01% or 20 per executed order (whichever is LOWER) as a transaction fee regardless of your trade size. This is our way of simplifying things. To reiterate, you pay only 0.01% or 20 per executed order that you place, irrespective of how many trades are executed for that particular order.
For example: You place an intraday ‘buy’ order for 300 shares of Reliance. This order may get executed at different times until the whole 300 are bought. However, we at Zerodha charge you only for the order that you placed, irrespective of how many trades it takes to complete the order. The same charges apply for trading intraday or Futures & Options.
To know more: http://www.zerodha.com/pricing
Kite is a minimalistic, intuitive, responsive, light, yet powerful web and mobile trading application offered by Zerodha. Bandwidth consumption of less than 0.5 Kbps for a full marketwatch, extensive charting with over 100 indicators and 10 chart types, advanced order types like Brackets and cover, millisecond order placements, and more. Used by over 70,000 clients and serving over 5 million requests a day with no hiccups.
Our Genesis: Zerodha was conceived to address the problems of every trader – excessive cost and substandard support. At Zerodha, we are firmly committed to working towards our vision of creating a brokerage-free world to benefit the most important stakeholders when it comes to the financial markets - YOU. We are equally committed to providing the best possible customer experience through highly personalized service and support. To find out more about us feel free to visit our website. For queries you could create a ticket on our support portal or call us at 080-40402020 or 080-33102020.
There are 2 types of trading backup system/processes planned for handling the subject i.e. 'Call and Trade' desk at HO and dealer desk located in branch locations. All successfully registered clients would be provided with Call and trade numbers and the clients would have to call us on these numbers and authenticate their account information before the dealer can place trades.
All clients on any issue in internet or connectivity failure or in any other difficulty can call on the nation wide accessible number to receive 'Call and Trade' service. After successful authentication i.e. manual authentication after providing personal identification details to call and trade dealer, clients can access their account as required. Clients being served at dealing desk can access their accounts with help of dealers at these locations.
Additional charges of ₹20 per executed order:
A) for orders placed through our support/dealing desk.
B) intraday (MIS/BO/CO) positions squared off before market closing by our RMS team.
Note: Trading using our Call & Trade desk involves many uncertain factors which include complex hardware, software, systems, and communication lines. These are susceptible to interruptions.
Zerodha charges | Equity delivery | Equity intraday | Equity futures | Equity options |
---|---|---|---|---|
Brokerage | Zero Brokerage | 0.01% or Rs. 20/executed order whichever is lower | 0.01% or Rs. 20/executed order whichever is lower | Flat Rs. 20 per executed order |
STT/CTT | 0.1% on buy & sell | 0.025% on the Sell Side | 0.01% on Sell Side | 0.05% on Sell Side(on Premium) |
Transaction charges | NSE: 0.00325%BSE: 0.00275%MCX-SX: 0.002% | NSE: 0.00325%BSE: 0.00275%MCX-SX: 0.002% | NSE: 0.0021%BSE: 0.0007%MCX-SX: 0.0014% | NSE: 0.053%BSE: 0.027%MCX-SX: 0.027% (on premium) |
GST | 18% on (brokerage + transaction charges) | 18% on (brokerage + transaction charges) | 18% on (brokerage + transaction charges) | 18% on (brokerage + transaction charges) |
Sebi charges | ₹20 / crore | ₹20 / crore | ₹20 / crore | ₹20 / crore |
Stamp charges | Click here to view stamp charges for different states |
Zerodha charges | Currency futures | Currency options | ||
---|---|---|---|---|
Brokerage | 0.01% or Rs. 20/executed order whichever is lower | 0.01% or Rs. 20/executed order whichever is lower | ||
STT/CTT | No STT | No STT | ||
Transaction charges | NSE: 0.00135%MCX-SX: 0.0013% | NSE: 0.044%MCX-SX: 0.037% | ||
GST | 18% on (brokerage + transaction charges) | 18% on (brokerage + transaction charges) | ||
SEBI CHARGES | ₹20 / crore | ₹20 / crore | ||
STAMP CHARGES | Click here to view stamp charges for different states |
Zerodha charges | Commodity | |||
---|---|---|---|---|
Brokerage | 0.01% or Rs. 20/executed order whichever is lower | |||
STT/CTT | 0.01% on Sell Side (Non-Agri) | |||
Transaction charges | Non-Agri: 0.0031% | Agri: 0.00175% | |||
GST | 18% on (brokerage + transaction charges) | |||
SEBI CHARGES | ₹20 / crore | |||
STAMP CHARGES | Click here to view stamp charges for different states |
Author | Mohamed Arif |
Document | Business Continuity Management |
Version | 1.0.0.2 |
Reviewer | Mr. Shrikant Pandit |
Review notes | |
Version notes 1.0.0.1 | |
Keywords |
This document contains confidential information of Omnesys Technologies Pvt Ltd, which is provided for the sole purpose of permitting the recipient to evaluate the deployment document submitted herewith. In consideration of receipt of this document, the recipient agrees to maintain such information in confidence and to not reproduce or otherwise disclose this information to any person outside the group directly responsible for evaluation of its contents, except that there is no obligation to maintain the confidentiality of any information which was known to the recipient prior to receipt of such information from Omnesys Technologies Pvt Ltd, or becomes publicly known through no fault of recipient, or is received without obligation of confidentiality from a third party owing no obligation of confidentiality to Omnesys Technologies Pvt Ltd.
Author | Mohamed Arif |
Document | Business Continuity Management |
Version | 1.0.0.2 |
Reviewer | Mr. Shrikant Pandit |
Review notes | |
Version notes 1.0.0.1 | |
Keywords |
This document contains confidential information of Omnesys Technologies Pvt Ltd, which is provided for the sole purpose of permitting the recipient to evaluate the deployment document submitted herewith. In consideration of receipt of this document, the recipient agrees to maintain such information in confidence and to not reproduce or otherwise disclose this information to any person outside the group directly responsible for evaluation of its contents, except that there is no obligation to maintain the confidentiality of any information which was known to the recipient prior to receipt of such information from Omnesys Technologies Pvt Ltd, or becomes publicly known through no fault of recipient, or is received without obligation of confidentiality from a third party owing no obligation of confidentiality to Omnesys Technologies Pvt Ltd.
All our servers are hosted in Netmagic Tier-3 datacenter at Mumbai with redundant firewall, switches, servers & connectivity to the Internet.
Every day we are taking backup of database one copy in a database server itself and other copies are stored in backup server and external media device also for need of restoration on need basis.
The Database is restored from these copies on failure.
If there is a problem with the database when we can restore the database from the backup node to server immediately and even if that backup system has a problem we can restore the data from the external device.
To avoid single points of failure we plan to run a parallel servers which are running simultaneously thus adding redundancy, so that customer can be provided service with limited downtime delay.
We have a helpdesk where we can accept orders from the clients in case of failure of systems after proper authentication of the client.
The Refund & Cancellation policy for all payments made towards account opening using the payment gateway shall stand as under:
Note: The completion of the refund procedure is subject to agencies such as banks, payment gateways.
All that you need to know in case your trading account is not active for more than 12 months.