Update 12 Dec 2024

Introducing events search on Kite

Keeping up with upcoming events like dividends, bonuses, stock splits, quarterly results, and other corporate actions across multiple companies can be overwhelming. Tracking this information manually is time-consuming and also increases the chances of missing key updates.

This is why we have made it simpler with events search on Kite. You can now easily find stocks with upcoming corporate actions just by searching for the type of event you are interested in.

On Kite, go to the Marketwatch search, select Events, and search for any corporate action like dividends, bonuses, quarterly results, etc.

Note: Events search is currently available on Kite web and will be available on the Kite app in coming updates.

Update 11 Dec 2024

Introducing the Money Mindful series

Despite all the interest in the stock market after COVID, there are still only 5 crore unique mutual fund investors. I’ve said this earlier as well—one of the biggest challenges for the Indian markets is the lack of an advisory ecosystem with just about 900 RIAs.

If you consider mutual fund distributors, there are about 2.7 lakh+ plus, but still not enough. For a broad comparison, there are over 27 lakh+ insurance agents. If Indian markets have to expand, not only do we need RIAs but MFDs as well. Moreover, it’s tricky to make the RIA model work in smaller cities and towns.

Even though we only offer direct plans at Zerodha, we know that they are not for everyone. Which means distributors will always have a role to play. Being a mutual fund distributor is also a good career option for a lot of people.

So we have teamed up with Hansi Mehrotra to launch Money Mindful, a free video series to help you prepare for the NISM distributor exam and then start your career. We’ve also partnered with AssetPlus, which helps distributors start their business once they pass the exam through Rainmatter.

Check out the post here.

Update 10 Dec 2024

Trade commodity F&O on MCX and NSE using collateral margin

You can now use margin received from pledging securities to trade Commodity F&O on both, MCX and NSE.

What is pledging?

If you are holding stocks, mutual funds, ETFs, and bonds in your demat account, these securities can be pledged as collateral margin, which can be used for equity intraday trading, trading futures, writing options, and now commodity F&O trading.

Watch our video guide on pledging securities here.

At Zerodha, we provide a single ledger facility that allows you to trade in both equity and commodity segments (MCX and NSE Commodity) using the same funds in your trading account. To enable this facility on the Kite app, follow the steps below:

  1. Tap on Profile and then on Segments.
  2. Tap on Commodity and tap on Continue.
  3. Select Gross income, Trading experience and Commodity trade classification.
  4. Upload income proof or select holdings statement as income proof.
  5. Tap on the undertaking and select mobile or email for OTP.
  6. Tap on Continue, enter the OTP and tap on Verify.

You can also follow our step-by-step video on activating the single ledger here.

Update 18 Nov 2024

Beware of investment scams in the name of Zerodha

These fake app and website scams keep getting worse and worse. Not a day goes by where I don’t read about such scams or hear from people who’ve been affected. The scale of these scams is just insane.
There are now countless phishing scams that take advantage of the familiarity of all major brands, celebrities, etc. The tricks vary—fake apps, fake websites, fake social media profiles, scam calls—but all with the same goal: to steal your money. We’ve discovered multiple such scams in the name of Zerodha.

These scams work because they take advantage of our emotions like hope, fear, and greed. Two simple rules that can protect you:
1. Never act in a hurry and always verify.
2. If something seems too good to be true, it probably is.

Be extremely suspicious about everything. If you’re seeing this post, you’re probably already aware of these scams, so please share this with your friends and family who might be more vulnerable.

Product updates 18 Nov 2024

New technical widget on Kite App.

The new technicals widget is now available on the Kite app.

Powered by Streak, the widget gives a quick overview of the market with a market heatmap, top gainers and losers, scanners, and strategies, and more.

Update 12 Nov 2024

10 years of Zeodha Varsity

It’s been 10 years since we started Varsity. What began as a simple blog has gradually grown into a full-fledged stock market education initiative. Today, Varsity spans text, video, audio, and our latest addition—a live format called Varsity Live. It’s an interactive, live education program and the first of its kind.

When we started, Karthik and I decided that Varsity would have no agenda. There would be no pitching of Zerodha to Varsity users, no mandatory login, or anything else. Ten years later, we’re proud to say we’ve stuck to the original principle. We have over two million users on Varsity, and we still don’t know if they even have Zerodha accounts. 😬

By the way, here’s the link to Varsity Live. If you’re interested, there’s a course starting tomorrow.  😃

Update 08 Nov 2024

SEBI’s new rules for direct payout of securities: What’s changing?

If you are an active investor in the stock markets, then you know a lot has changed in how stocks are settled in India. Here’s a new change that you should know about🧵👇

Until November 7, 2024, when you bought shares for delivery, on the T+1 day, the Clearing Corporation (CC) would credit those shares to the broker’s pool account. By the end of the day, the broker credited the shares to your demat account.
Going forward, the Clearing Corporation will now directly credit these shares to your demat account, skipping the need for a broker to settle your shares.

Why does this matter?

When you buy a share, the CC credits it to the broker’s pool account on T+1. While most brokers will credit shares to your demat account on T+1 itself, by design, brokers are allowed time till T+2 to credit the shares. With Direct Payout, you can expect shares in your demat account on T+1.
The new settlement system makes the CC responsible for debiting/crediting shares from/to your demat account.

Does this diminish the broker’s role?

This simplifies the broker’s responsibilities as it will no longer have to upload pay-in/payout instructions to the CC.

The broker will still be responsible for ensuring the accurate and timely reporting of client trades, managing clients’ margin trades, verifying all direct payouts, and addressing any discrepancies in the direct payout process.

What if you have multiple demat accounts?

Where will the CC payout the shares? The primary demat account mapped with your trading account at the stock exchange will receive the credit.

As a client, your trading and investing experience will not change. But there is one change. Earlier, if you bought shares using Margin Trade Funding (MTF), you needed to authorize the pledging of shares via an OTP. This is no longer needed, making the experience a lot smoother.

You can check out this post for more details.

Update 06 Nov 2024

Corporate growth could be hitting a plateau

Corporate growth, in both the public and private markets, seems to be plateauing across most sectors.
Even in the private markets, in most cases, valuations in the earlier funding rounds were already far over the fundamental value or expected growth of startups, which is why there’s hardly any news about funding for later-stage startups.

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Read more on the topic by Markets by Zerodha.

Update 04 Nov 2024

Retiring Early? Read This First

I hadn’t realized how popular this Financial Independence, Retire Early (FIRE) trend had become until I saw this Zero1ByZerodha video😬. There’s nothing wrong with wanting to retire early, but retirement isn’t just about money.

From what I’ve seen, many people don’t consider all the financial, emotional, and psychological pitfalls of retirement and end up regretting it later. So, if you’ve been thinking about retiring early, here are some things you should know.

Also, here’s some more data from The Ken

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Update 28 Oct 2024

Muhurat trading session on Friday, November 1, 2024,

The Diwali 🪔 Muhurat trading session this year will be held on Friday, November 1, 2024, from 6:00 PM to 7:00 PM.

Keeping with our tradition of over the last 14 years, brokerage charges for all trades during the Muhurat trading session will be reversed. Zero brokerage on all Intraday, F&O, and commodity trades.

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What is Muhurat trading?

A Muhurat trading session is held every year by the exchanges on Diwali, during Lakshmi Puja.

Before electronic trading, trading took place in designated trading halls of stock exchanges, accessible only to stockbrokers and their registered assistants. Investors would place orders through brokers, who would then execute the trades in the hall.
On Muhurat trading day, the usual restrictions were relaxed, allowing brokers’ clients, friends, and family to witness open-outcry trading in person.

Buying stocks during Muhurat trading is considered auspicious and is believed to bring good fortune for the year ahead.

Note: Brokerage will be charged as per applicable rates on November 1, 2024, and will be subsequently reversed within 3 days’ time.
Update 28 Oct 2024

Reliance Industries bonus issue

Today is the ex-date for the bonus issue of Reliance Industries. Anyone holding shares of Reliance as of October 28, 2024 (ex/record date) will get one share for every one share held.

Here’s all you need to know🧵👇

What is a bonus issue?

A bonus issue is a way for a company to reward its shareholders by giving them additional shares at no extra cost. However, the value of your investment remains the same.

When a company issues bonus shares, the number of shares increases, but the investment value remains the same. The stock price is adjusted according to the bonus ratio, this should not be mistaken for a correction or a fall in stock price.

Example:

– Before bonus: 100 shares of Reliance @ ₹2,600 each (Total value = ₹2,60,000)
– After bonus: 200 shares @ ₹1,300 each (Total value = ₹2,60,000)

You can learn more about different corporate actions and their impact in this chapter on Varsity.

Who is eligible for the bonus issue?

To be eligible for bonus shares—or any corporate action, you must purchase shares before the ex-date. For example, those who bought Reliance shares on or before October 25, 2024, will be eligible for the bonus shares.

When are the bonus shares credited?

It usually takes around 15 days from the record date for bonus shares to reflect in your demat account, though the timeline can vary based on the company’s Registrar and Share Transfer Agent (RTA).

Until the bonus shares are credited to your demat account, you will see a drop in your investment value and P&L on Kite and Console. Once the bonus shares are credited, your investment value and P&L will be automatically updated.

Impact on F&O positions

Traders holding F&O positions of the underlying announcing bonus issue or any corporate action are not eligible for corporate action benefits.

However, since the stock price adjusts, exchanges modify the lot size and strike prices of contracts accordingly.

These adjustments are done in such a way that the value of the position of the market participants before and on the ex-date remains the same.

We have explained how Reliance’s bonus issue impacts its F&O contracts in this post on Tradingqna

 

Update 25 Oct 2024

On user disengagement

With everybody chasing “engagement,” we seem to have made many things on the internet annoying and unusable. My own phone is constantly on silent because of annoying calls, notifications, emails, etc.

From day one of Zerodha, “don’t do unto others what you don’t want done unto you” has been at the core of our philosophy. We don’t send an email or a notification unless it’s important. Counter-intuitively, this is why people trust us?

Not triggering users to trade hurts the business, but in the long run, it’s good for the customers.

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K calls this “user disengagement” and explains it better than I can.

Update 23 Oct 2024

Alert Triggers Order (ATO) now available on the Kite app.

The Alert Triggers Order (ATO) feature is now available on the Kite app.

With ATO, you can link a basket of orders to an alert and whenever this alert is triggered, these orders will placed on the exchange, without you needing to take any action.

This allows you to easily:

– Invest in a basket of stocks or ETFs based on the price level of an index or stock
– Trade in F&O strategies based on underlying price movements
– Use it as a risk management tool to protect your profits or minimize your losses and more.

Here’s all you need to know👇

Update 22 Oct 2024

Revision in lot size for BSE index F&O contracts

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:

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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:

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