We’re excited to support the GitHub Secure Open Source Fund, a program dedicated to making open-source projects more secure and sustainable. The fund offers developers financial support, security education, mentorship, and more.
If you are working on an open source project, you can apply for this program until 7th January.
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.
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. 😃
Markets will remain closed on Wednesday, November 20, 2024, on account of Assembly Elections in Maharashtra.
Keep track of all trading holidays here.
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🧵👇
Why does this matter?
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.
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.
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.
Read more on the topic by Markets by Zerodha.
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
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.
What is Muhurat trading?
A Muhurat trading session is held every year by the exchanges on Diwali, during Lakshmi Puja.
Buying stocks during Muhurat trading is considered auspicious and is believed to bring good fortune for the year ahead.
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
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.
K calls this “user disengagement” and explains it better than I can.
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👇
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.
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.
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