How to respond when Zerodha emails asking for clarity on your trades

Sat, 20 Jun 2026 00:00:00 +0000

When Zerodha emails you asking for clarity on specific trades, an exchange surveillance system or Zerodha’s own monitoring has flagged those trades as unusual, and SEBI rules require the broker to ask you to explain them and to report your answer, or your silence, to the exchange. You have 3 working days to respond, and if you do not, your trading account may be blocked until you do. The email is a regulatory request, not by itself an accusation of wrongdoing.

Zerodha reversal trades clarification email

Sat, 20 Jun 2026 00:00:00 +0000

The Zerodha reversal trades clarification email is a message Zerodha sends asking you to explain trades that exchange or internal surveillance has flagged as possible reversal trades, transactions that buy and sell identical contracts in a short interval and cancel out in market position. Zerodha sends it because SEBI and the exchanges require brokers to monitor, seek clarification on, and report trading activity that is not performed in the normal course of transactions. The email is a request to establish that your trades were genuine; it is not, by itself, a finding that they were not.

Reversal Trades on WebNotes

How to respond when Zerodha emails asking for clarity on your trades

Zerodha reversal trades clarification email