Comment on Mandatory TOTP for illiquid risky contracts

Monis commented on 10 Jun 2020, 12:14 PM

This is the first time Zerodha is making major mistake in my opinion. It is the duty of stock exchanges to decide which scrips to allow or not for trading n it is not the responsibility of the broker to make judgement based on only market cap or whatsoever criteria he may have in his mind.

This can not n will not save everybody. Have you seen rate of Rcom from 800 to 2, rel infre, r cap, cox from 300 to 2. Will this practice save innocent investors from these carnage, which were even not related to this corona fall? On the other hand some scrips too went from below 100 cr mkt cap or even from 10 cr mkt cap to 1000 + cr market cap. Investors will miss these too, thanks to this new safety measure.

One last example – Unitech – went from sub 50 cr market cap in 2004 to 100000 cr mkt cap n now 400 cr market cap. Is it responsibility of the brokers to decide when to buy certain scrips ?

This just the illustration – No hurt feelings

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