Zerodha
Penny stocks
Nudge
Penny stock block (nudge) on Kite
When a Zerodha client tries to trade a penny stock (very low-priced scrip), Kite shows a nudge warning about the heightened risk. The nudge does not block the trade; it informs.
Penny stock criteria
- Price below threshold (typically below Rs 10).
- Often surveilled (ASM Stage 1+).
- Thin liquidity.
- High percentage moves common.
Why the nudge
Penny stocks have:
- Higher manipulation risk.
- Wide bid-ask spreads.
- Susceptible to surveillance actions.
- Lower fundamental quality on average.
The nudge reminds the user of these factors before proceeding.
What you can still do
- Proceed with the trade after acknowledging the nudge.
- Use limit orders for predictable execution.
- Keep position size small.
See also
- ASM and GSM frameworks explained
- Surveillance measures and trading risks
- Illiquid stocks SEBI rules
- Penny stock (India)
- NSE / BSE group meanings (EQ, BE, BZ, T)
- NSE BZ category explained
- SM / M symbols (NSE Emerge / BSE SME)
- Trade-to-Trade segment rules
- Periodic Call Auction stocks
- Circuit filters NSE BSE
- Long-term ASM Stage 1 to 4
- Short-term ASM
- Suspended stock holdings on Zerodha
- What is stock suspension, process and impact
- Block deal vs bulk deal on Zerodha
- Large / mid / small-cap classification at Zerodha
- DVR shares on Kite
- Partly-paid shares on Kite
- Delivery volume percentage on the Kite marketwatch
- Market depth view on Kite
- How to add scrips to the Kite marketwatch
- Nudge: 100% sale-of-holdings funds
- Nudge for selling holdings with open MTF positions
- SEBI broker risk disclosure norms
- SEBI 90% retail F&O traders lose money study
- SEBI RA vs IA distinction
- Kite Holdings tab explained
- Zerodha customer care number
- Is Zerodha safe
- Zerodha
- Kite (Zerodha)
External references
References
- Zerodha, Order placement nudges, support.zerodha.com.
- SEBI, Investor protection framework, sebi.gov.in.