The problem with permitting buying and selling in illiquid contracts isn’t for the extra threat on us, however most of those illiquid choice contracts are what are used to maneuver cash between accounts by fraudsters utilizing round buying and selling.
The issue has decreased after necessary 2FA, however some prospects nonetheless willingly share their credentials, together with 2FA to advisors or algo platforms. Now we have seen instances the place the algo creators and platforms have made fraudulent trades to maneuver cash from buyer accounts by creating losses.
Z-Join by Zerodha – 10 Feb 20
Inventory market scams everybody ought to pay attention to – Z-Join by Zerodha
Hindi: इस पोस्ट को हिंदी में पढ़ने के लिए यहाँ क्लिक करें। The lure of straightforward cash is what attracts folks to buying and selling and investing, together with yours really. However like somebody as soon as mentioned, “Inventory markets are the hardest place on the planet to make straightforward…
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Over 30,000 choices contracts are listed on the trade, however solely a fraction of them actively commerce, whereas the remainder are illiquid. These choices contracts the place there is no such thing as a different buying and selling are utilized by scammers to put illegitimate trades (purchase excessive and promote low with the identical account and in fast succession) which creates a loss in your account and revenue within the different buying and selling account. You’d assume this can be a real market loss, but it surely clearly isn’t.
Other than the loss, you are actually additionally uncovered to regulatory motion. Any such buying and selling exercise in your account could be appeared upon by the earnings tax division as cash laundering (creating losses to keep away from taxes, or convert white to black cash or vice versa). SEBI considers such trades round buying and selling. Other than the financial penalty that such trades entail, you can probably be banned for all times from the markets by SEBI.
Can be fascinating to listen to if anybody has an answer for this drawback. We’ll implement and permit buying and selling in illiquid choices as properly.
4 Likes
nithin:
Can be fascinating to listen to if anybody has an answer for this drawback. We’ll implement and permit buying and selling in illiquid choices as properly.
Solely three options come to my thoughts.
Let prospects do what they need.
Some type of implementation at trade stage. ( pointers by SEBI )
Proceed what you’re doing and save the uninitiated within the markets.
nithin:
Can be fascinating to listen to if anybody has an answer for this drawback.
Similar to you applied a kill change, use a toggle button asking for consent to commerce illiquid strikes.
And monitor that particular person’s PL – in case you discover it suspicious report back to trade !
catch 2 birds with one change !
viswaram:
use a toggle button asking for consent to commerce illiquid strikes.
However the fraudsters have already got the shoppers element and they’ll toggle the button themselves.
nithin:
The issue has decreased after necessary 2FA, however some prospects nonetheless willingly share their credentials, together with 2FA to advisors or algo platforms. Now we have seen instances the place the algo creators and platforms have made fraudulent trades to maneuver cash from buyer accounts by creating losses.
nithin:
These choices contracts the place there is no such thing as a different buying and selling are utilized by scammers to put illegitimate trades (purchase excessive and promote low with the identical account and in fast succession) which creates a loss in your account and revenue within the different buying and selling account. You’d assume this can be a real market loss, but it surely clearly isn’t.
viswaram:
And monitor that particular person’s PL – in case you discover it suspicious report back to trade !
catch 2 birds with one change !
Virtually all our prospects are on the loss-making facet. The fraudsters who revenue use small brokerage companies. We block buyer accounts instantly after we spot a fraud, so no fraudster will use us.
As soon as the loss has already occurred, nothing a lot may be carried out. Fraudsters preserve switching between accounts the place income are generated. So even complaints to exchanges are ineffective as the cash is already withdrawn by the point an motion may be taken.
@nithin Thanks rather a lot in your form reply .
Should you see previous few months trade itself reduce down lot of strikes . There ended many of those inaccurate trades .
One resolution zerodha already implementing is that pricing mechanism the place it wont permit if its out of bounds 50-150 % of LTP . This alone had eradicated 99% inaccurate trades .
The one draw back is that zerodha not permitting me to open the OI .
I really imagine zerodha in final 6 months within the title of maintaining fraud in examine , made the platform an excessive amount of claustrophobic. Past some level duty ought to be shifting in the direction of lawmakers, exchanges and authorities .
I do know my phrases sound harsh however as a dealer since 2014 in zerodha i’m feeling very very restricted .
Kindly permit OTM strikes as per trade and pink flag these inaccurate trades / account and report.
nithin:
Can be fascinating to listen to if anybody has an answer for this drawback
I do perceive social duty, however why ought to Zerodha be a mom to all these adults who’re prepared to lose cash. For these trades put a small message which he clicks and accepts duty. Zerodha has carried out its half.
For one among my fav inventory (Vedanta and Hindustan zinc) earlier than shopping for, there’s a message field which pops saying homeowners have pledged all of their shares (icici direct) . Customers have to click on earlier than shopping for the identical.
You might do the identical.
Does it make sense to permit restricted amount in strikes that are illiquid?
Let’s say there ought to be a restrict of both max amount one can purchase or promote or use some contract quantity to outline like let’s imagine 10 lacs
1 Like
nithin:
however some prospects nonetheless willingly share their credentials, together with 2FA to advisors or algo platforms. Now we have seen instances the place the algo creators and platforms have made fraudulent trades to maneuver cash from buyer accounts by creating losses.
That is method it’s lately. Disregard for safety and private duty to make the bucks. Then the regulators will create extra hoops to leap by for us all.
siva0:
I really imagine zerodha in final 6 months within the title of maintaining fraud in examine , made the platform an excessive amount of claustrophobic. Past some level duty ought to be shifting in the direction of lawmakers, exchanges and authorities .
Wow man, you modified when the Boss man replied.
Few hours again you known as him the next:-
siva0:
as if zerodha is god !!!
siva0:
You can be answerable sooner or later , what all you’re doing behind the closed iron weil , you’ll be put these iron bars .
siva0:
Please Mark my wards .
Notice the spell – it’s wards – which means you will have already recognized the ward no in KCG Hospital Bangalore. (Normal Ward and never even particular ward)
siva0:
Sadly zerodha appearing like “Gandhari” who selected to change into blind with out any logic .I’m questioning Who can inform her !! Krishna tried and failed .
siva0:
I hope somebody will get up the man who’s appearing sleeping and accountable for this immoral act .
siva0:
am complaining about one thing which is immoral, even on technical foundation they need to not deny my trades . However what they’re doing is fallacious hopefully if u perceive you’ll help me as properly .
All mentioned and carried out, with the under level, you confirmed your like to Zerodha.
siva0:
In poor health see how far i can go alongside . Few divorces are calm however few keep again and quarrel and attempt to put logic into different head .
Disclaimer: By no means understood one phrase of the particular content material, (I’m an Investor not a dealer – dont like shedding cash) however preferred the fervour during which the writer was attempting to push his case, which acquired the boss man to answer. Nice work.
1 Like
nithin:
Now we have seen instances the place the algo creators and platforms have made fraudulent trades to maneuver cash from buyer accounts by creating losses.
That is regarding certainly!
Haha @neha1101
Even earlier than his reply i replied to you as properly I nonetheless have lot of respect for them .
See all these guidelines typically are applied by MBA grads who simply do their job . They dont see how customers really feel it . All my curses are principally in the direction of them by no means to harm anybody personally however finish of day hardly 1% get revenue right here it has to shift atleast 2-3% this yr thats my motto.
Having mentioned that i softned coz he replied and prepared to take up options he would have merely ignored a random person like me . This act instructions respect . Thats why i’m nonetheless right here .
1 Like
nithin:
prospects nonetheless willingly share their credentials, together with 2FA to advisors or algo platforms
I feel that is past your management. Identical may occur for financial institution credentials and other people may lose cash – is the financial institution accountable ?
Could be the fraudster can also be studying this, however zerodha is not going to permit greater than 1 session in 1 browser. So both they’ve to make use of many browsers or have a number of workstations with a number of browsers. Assuming that man is in a special place than the sufferer – the IP deal with ought to give him away.
Should you actually need to save all of your prospects then you have to ask the tech workforce to design a VPN consumer that should run on the pc to open zerodha.
How could of the API shoppers share their credentials – i believed they had been the neatest few !
siva0:
1% get revenue right here
This isn’t true. Didnt you learn the info launched by Sebi?Throughout FY22, 11% of particular person merchants in fairness F&O section made revenue.
sebi.gov.in
SEBI | Research – Evaluation of Revenue and Lack of Particular person Merchants dealing in…
Securities and Trade Board of India is made for shield the pursuits of buyers in securities and to advertise the event of, and to manage the securities market and for issues linked therewith or incidental thereto
viswaram:
How could of the API shoppers share their credentials
I code and run all my stuff. However there are too many plug and play customers.
However a great majority of 11% could not have made sizeable revenue and so could have generated lower than FD returns.
VijayNair:
Throughout FY22, 11% of particular person merchants in fairness F&O section made revenue.
thankyou, this knowledge will certainly assist in my new e book.
Was it simply me or did anybody else simply cease bothering to learn full sentences from some posts on this thread?
Just about simply glanced at just a few phrases and tried to establish context & which means