The content discusses the consequences of not settling a negative balance with a broker, specifically Zerodha. The user took a short position that went wrong due to illiquidity, resulting in a negative balance. The user is considering transferring their holdings to a different Dmat account and leaving the Zerodha account as it is. However, this action may result in Zerodha transferring the negative balance to a debt collection agency and preventing the user from using Zerodha in the future. Additionally, it is suggested that this negative balance may impact the user’s CIBIL score.
Several users advise the original poster to reach out to Zerodha support and ask for a timeframe to clear their balance without incurring interest. If the user transfers their shares to another broker, they may incur DP selling scrip charges, which will increase the negative balance. It is also suggested that Zerodha may freeze the user’s Dmat transactions and holdings until the negative balance is settled. Overall, it is recommended that the user settles their negative balance with Zerodha to avoid further consequences.
click me for original post link – post sentiment : negative
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