Zerodha Stops Verified P&L for Transferred Stocks to Curb Sharing of Fake P&L Screenshots and Videos by Fininfluncers
Moneylife Digital Team 31 August 2023
To curb the sharing of fake profit and loss (P&L) screenshots and videos by financial influencers (fininfluencers) on social media to peddle courses, advisory, trading accounts, and other financial products, Zerodha Brokers Ltd has abandoned its verified P&L feature for transferred stocks. Zerodha is one of the few brokers that allows customers to enter a buy price for stocks transferred from other brokers for P&L and analytics.
 
In a tweet, Zerodha co-founder and chief executive officer (CEO) Nithin Kamath says someone pointed out that people can potentially game-verified P&L by entering a lower buy price for the transferred stock and showing higher equity profits in verified P&L. 
 
"So, starting today, we have stopped showing the P&L for transferred stocks on the verified P&L page. This is because there is no way for us to verify if the buy price entered by the customer is accurate. This does not matter for F&O or intraday equity positions because they cannot be transferred between brokers, and we will have both buy and sell trades," Mr Kamath added.
 
As pointed out by Moneylife, several high-profile trainers, it is alleged, have consistently made false claims about their trading prowess to lure gullible investors and how these so-called experts edit their P&L and claim fake profits when speaking at traders' meets. (Read: Trainers Who Lure Gullible Investors with Fake Trading Profits Need To Be Made Accountable)
 
According to the Zerodha founder, one issue they have spotted with the verified P&L page is that people are cherry-picking dates to show when they were profitable. "We have now disabled the custom date range option, and anyone sharing verified P&L can select the last 30, 60, 90, 180, or 360 days."
 

 

Comments
Binod
10 months ago
Readers please note:

Zerodha has not stopped their verified p&l feature. Only the equity segment has been removed from this verified p&l reports.

The title of this article is misleading.

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