Zerodha has banned penny stocks purchases. ANy other good broker is there

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Sunil Lalwani
Posts: 8
Joined: Mon May 11, 2020 5:29 pm

Zerodha has banned penny stocks purchases. ANy other good broker is there

Post by Sunil Lalwani »

I tried to place orders for some stocks but it was rejected by Zerodha on RMS grounds. Any other good broker is there who can give zero brokerage trades?

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RKD
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Joined: Sun May 10, 2020 6:30 pm

Re: Zerodha has banned penny stocks purchases. ANy other good broker is there

Post by RKD »

AFAIK, Zerodha has only banned "illiquid" penny stocks.

Many others like Trident, SPML Infra, Kesar Petro etc, which have good volumes, can still be traded.

This is the official statement of Zerodha on their website:

"We have blocked new purchases in all illiquid penny stocks and illiquid option contracts that we believe can be used for executing trades to intentionally create losses, both by phishers and fraud advisers. Hoping other brokers do the same to stop this sudden increase in frauds."

Other brokers are still allowing trades in ill-liquid stocks. Try Upstox, Fyers, Angel and IIFL for zero brokerage.

Sunil Lalwani
Posts: 8
Joined: Mon May 11, 2020 5:29 pm

Re: Zerodha has banned penny stocks purchases. ANy other good broker is there

Post by Sunil Lalwani »

Thanks SIr for prompt reply. I will try upstox.

Shivarama Karkala
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Joined: Mon May 11, 2020 8:03 pm

Re: Zerodha has banned penny stocks purchases. ANy other good broker is there

Post by Shivarama Karkala »

It is a very bad decision by Zerodha to ban penny stocks. I am illiquid stock investor & have invested in over 25 scripts using Zerodha. Most of these are blocked.

Zerodha management must understand that not all penny or il-liquid stocks are fraud. Many of these are turnaround stories and big future multibaggers.

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RKD
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Re: Zerodha has banned penny stocks purchases. ANy other good broker is there

Post by RKD »

Zerodha has announced that it will allow even illliquid penny stocks to be bought and sold if the investors gets a TOTP i.e. “time-based one-time password".

"Instead of asking mobile or email OTP on every login, we have made it mandatory to login using a TOTP if you want to trade in any risky scrips. We classify a scrip as “risky” if they are illiquid and can be used by fraudsters to create artificial losses in your account.

If you haven’t logged into Kite using TOTP and are trying to trade in these illiquid risky scrips, such orders will be rejected and the rejection message will ask you to set up TOTP to place the order. Setting up TOTP is a one-time task that adds security to your account. Then you simply need to login using this TOTP every day and will be allowed to place trades.
"

https://zerodha.com/z-connect/tradezero ... -contracts

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