BSE will revise the lot sizes for all new index F&O contracts introduced from November 20, 2024, onwards.

– Existing weekly and monthly contracts will continue with the current lot sizes until they expire.

– Newly introduced contracts will have the revised lot sizes as follows:

The lot size for quarterly and half-yearly contracts for BSE Sensex will be revised from December 27, 2024, end of the day.

The revised lot sizes will come into effect from the following expires:

NSE has already announced the revision for index F&O contracts, which you can check here.

SEBI’s new rules require the minimum contract value for index F&O to be minimum ₹15 lakhs at the time of launching new contracts. To meet this criteria, NSE will revise the lot sizes for all new index F&O contracts introduced from November 20, 2024, onwards.

– Existing weekly and monthly contracts will continue with the current lot sizes until they expire.

– Newly introduced contracts will have the revised lot sizes as follows:

For quarterly and half-yearly contracts:

– Lot size will change on December 26, 2024, end of the day for Nifty.
– Lot size will change on December 24, 2024, end of the day for Bank Nifty.

All the changes will come into effect from the following expires:

Free and Open Source Software (FOSS) has been an integral part of Zerodha’s success. We rely on it heavily to power everything from our products to Z-connect, Tradingqna, and even my laptop (which runs Zorin Linux). Without FOSS, Zerodha wouldn’t exist and neither would the larger startup ecosystem.

We have always supported the open source ecosystem in numerous ways and are now formalizing all those efforts by setting up a fund to support FOSS projects globally, starting with $1 million a year. Hopefully, this also inspires other organisations to give back.

Check out this post to learn more about FLOSS/fund.

Pledged cash equivalent securities, such as Liquid ETFs, Sovereign Gold Bonds, G-Secs, etc., can now be sold instantly without waiting to unpledge them. Here’s all you need to know 👇

SEBI’s new index derivatives rules allow each exchange to have a weekly expiry for only one benchmark index beginning November 20, 2024.

Under the new rules, the NSE will have weekly expiry only for the Nifty 50 index, discontinuing it for the Nifty Bank, Nifty Financial Services, and Nifty Midcap Select indices.

BSE will offer weekly expiry only for Sensex and will discontinue it for BANKEX and Sensex 50 indices.

Here’s how the expiry schedule will look like once the changes come into effect.

We’ve explained what changes for index derivatives under new rules in this episode of Markets by Zerodha’s Daily Brief👇

While SEBI is tightening rules to make the markets safer on the one hand, it is also making things simple on the other.

Starting from October 14th, shares bought will be directly credited to the customer’s Demat account through net settlement. This significantly simplifies our DP process, which today involves receiving shares for the entire group of clients and then allocating them based on purchases made, i.e., gross settlement.

And this is much safer, too. A broker from now on will never be able to touch client securities ever, which is possible today when you buy stocks and are not yet credited to your Demat.

By the way, another change that started yesterday is that you can use 100% of funds from sale proceeds for further purchases. Until now, you could only use 80% of the funds if you bought on the same day.

Link to the article which explains this in detail.

The new updated technicals widget on Kite web now gives you all the key market information in one place.

Powered by Streak, along with a quick technical summary of stocks and F&O contracts, you can now check the market heatmap, top gainers & losers, scanners, strategies, and more.

Note: The updated technicals widget is currently available on the Kite web and will soon be available on the Kite app.

Here’s the potential impact of only one weekly expiry of index derivatives per exchange and contract sizes going up by around 2.5 times.

As things stand, assuming that those trading weekly don’t move on to trading monthly, the impact will be ~60% of overall F&O trades and ~30% of our overall orders.

I guess things will become much clearer from November 20th. We will then decide on our change in pricing structure, based on the impact on the business. 😀

Those who haven’t read the circular till now, check out this post.

Equity delivery will continue to be free at Zerodha. As of now, we are not making any changes to our brokerage.

From today, Oct 1, 2024 –

For options: STT increases to 0.1% from 0.0625%, and transaction charge decreases to 0.035% from 0.0495%.

This results in the cost of trades seeing a net increase of 0.02303% or Rs 2303 per crore of premium on the selling side on NSE and of 0.0205% or Rs 2050 per crore on BSE.

For futures: STT increases to 0.02% from 0.0125%, and transaction charge decreases to 0.00173% from 0.00183%.

This results in a net increase of 0.00735% or Rs 735 per crore of futures turnover on the selling side.

You can check out our brokerage calculator to see the new charges.

Since STT is charged on the entire contract value for futures, whereas in options, it is charged only on the premium, the impact will be much larger for futures traders.

Link to the earlier post.

We celebrated our 14th anniversary in August, and to mark the occasion, we invited our customers to send in their questions. Nithin, Nikhil, Kailash, Venu, and Karthik answered as much as they could—covering topics from investments, technology, education, operations, and more.

Watch the full AMA episode on our YouTube channel.

We have made a couple of updates to simplify the options menu on the Kite web positions page.

1. Change in options menu position: Previously, you had to hover over the position to access the options menu. To make it easier to access, we have repositioned the options button to the right side of the page.
2. Updated dropdown menu: The dropdown menu has been redesigned to reduce clutter and now provides quick access to the most used options, such as exit, add, convert, and position information.

Starting today, the pre-open session for IPOs and stocks relisting on the exchanges will close randomly in the last 10 minutes of the session. Earlier, the pre-open session used to close randomly in the last minute.

What does this mean?

Normally, the pre-open session is held from 9:00 AM to 9:08 AM with trading starting from 9:15 AM.

However, when a stock is listing on the exchanges. A special pre-open session is held from 9:00 AM to 9:45 AM to determine the opening price.

Between 9:00 AM to 9:45 AM, investors can place, modify, and cancel the orders. The order matching happens at the end of the session and normal trading resumes from 10 AM. Learn more.

Why the changes in pre-open session closing timings?

During the pre-open session for certain IPOs and relisted stocks, large orders are often placed at high prices but canceled just before the session ends.

This can create false demand and manipulate stock prices, which harms regular investors. To avoid such cases, the pre-open session will now be closed randomly during the last 10 minutes (between the 35th and 45th minute).

Today is a settlement holiday, and thus, settlements of funds and stocks don’t happen. This happens when banks in Maharashtra are closed, but trading on exchanges is open.

Most brokers don’t allow shares bought on Friday to be sold on Monday because of this. We at Zerodha, are among the few brokers that allow you to sell stocks bought on Friday.

By the way, due to the settlement holiday, your equity intraday profit credits and F&O credits aren’t included in your trading balance or are not available for withdrawal today.

And, Eid-e-Milad is shifted from the 16th to the 18th of September, and the 18th will also now be a settlement holiday. But the 16th continues to be a settlement holiday.

Here is the settlement holiday calendar.

🚀

The number of companies with a market cap >$1 billion is at an all-time high. Along with this, the allocation of Indian households’ investments in the stock market has also increased substantially. There are now 10 crore unique investors, compared to 3 crore in 2020. Thanks to the bull market and the ease of going public, there’s a ‘ghar-wapsi’ of Indian companies incorporated outside.

To add to this, the Ministry of Corporate Affairs (MCA) formally opened the doors of ‘reverse flipping’ or coming home to India yesterday.

Three years ago, I shared the problem of Indian companies building for India but incorporating outside the country. Now, things are the other way around. How the tables turn! What we need now are more Indian businesses, located in India, building products and services for the global market.

By the way, here’s a relevant tidbit from the recent report by Mario Draghi, the former president of the European Central Bank: between 2008 and 2021, close to 30% of unicorns founded in Europe relocated their headquarters abroad, with the vast majority to the US.

~Nithin

With rising incomes in Indian households, consumption growth has big potential in key areas.

We started @ZerodhaVarsity almost a decade ago to simplify how the stock market worked in English and Hindi for free. For people who preferred video, we turned all the modules into video. Today, Varsity is easily one of the most read and watched resources for all things financial markets.

But until now it was self-directed—you had to read, watch, and then learn about things. We had always wanted to introduce an interactive mode of learning about markets, and we finally went around to launching Varsity Live in collaboration with @LearnappHQ.

These two-day programmes come with practice tech. You don’t just listen to the class—you practice WITH the mentor. So you’d place a mock order, draw trendlines, and calculate your emergency funds using real data. So you learn by doing, not listening. We’ve reached 45k users from 100 countries—all organic.

If you’ve always wanted to learn how the stock market works but never got around to it, sign up for the next session on Varsity Live.

Earlier this year, I emailed @Nithin0dha to ask what he thinks about a personal finance playlist in Indian Sign Language. The project required a lot of effort and resources to create. I also know this playlist will not be widely consumed. So I wasn’t sure myself, and wanted a 2nd opinion 🙂

Of course, Nithin replied instantly 😅

The playlist is now live, and I think we are probably the first Indian broker to attempt this 😊. Please do share it with people you think will benefit from it.

Playlist link – here.

~Karthik

Gujarat accounts for about 9% of the total investor customer base, but they account for 40% of IPO participation in both retail and HNI categories.

IPO flipping (trading) in the Gujju genes. 😀

This data is from SEBI’s study on IPOs. Read the entire SEBI study here.

If you need any help with health insurance, talk to Ditto advisors here.

If you trade options on expiry day, you would have noticed option prices not trading in sync with spot prices, especially closer to the market close on expiry day. It might seem like an easy money-making opportunity, but there’s a lot more going on behind the scenes that affects those prices. In this video, Karthik explains the basics of options trading by explaining the intrinsic value of options and what it could mean if the intrinsic value seems mispriced.

Since 2017, IPOs of Small and Medium Enterprises (SMEs) have taken off in popularity, coinciding with the bull market we’ve been seeing in the Indian markets. This year alone, 162 SMEs have raised over ₹5,700 crores from Indian investors in just eight months Also, in 2020, there were only a couple of SME IPOs each month. Now, we’re seeing more than ~20 a month. Read more.

Fake trading app scams have exploded and have become a mega nuisance.

These scams work by inducing you to trade and making you think that making money is easy. So first, you are added to WhatsApp groups and then asked to install fake trading apps that look exactly like those of major brokers.

On the first couple of trades, you will make money. This is designed to convince you that you can make a lot of money. Then you’ll be asked to transfer money to trade. But when you try to withdraw, you’ll be first asked to pay fees, taxes, etc. After some time, the entire group and the people in it vanish.

What’s surprising is that even smart, sensible, and educated people fall for these scams. Always remember, if something is too good to be true, it almost always is. It’s important to be sceptical about claims of easy money.

@Zero1ByZerodha and @Cyberdost created this awareness video. Check it out and share it with your friends and family.

Here are a few use cases:

• Constantly seeing real-time changes in P&L can often be distracting and may tempt you to overtrade. You can easily enable privacy mode, to hide all these values.
• If you are in a situation where you want to hide details like investment amounts, quantities, and P&L when displaying something on Kite, you can simply enable privacy mode.

Note: Privacy mode is currently available on the Kite web and will soon be available on the Kite app.

Seeing calories, protein, carbs, etc., on a menu is a good start. Ideally, we need to see calories as a percentage of daily calories, proteins, etc.

One large chocolate milkshake has 1000+ calories, or 40% of an average person’s calorie intake, which is about 2500 calories.

But showing that a food contains 40% of the total calories that a person consumes in a day might reduce the sales of a lot of things. Currently, only the number of calories is shown on the menu and packaging, and it seems to be making only a small difference.

Most Indians don’t yet understand calories, but potentially, they could as a percentage. But yeah, one step at a time and this mandatory display is a great first step.

Something we @Rainmatterin Health discuss all the time with all the partners.