Background

Since brokers only provide 80% of the funds immediately and 20% at T1, most rebalance orders need to be repaired after execution, in case the user doesn’t add funds while rebalancing.

  • We have noticed that 26% of the users don’t come back to place the pending repair orders. 
    1. 75% of these users are core & Power users
    2. 70% of these user’s partial orders have 1.5Lakh+ in AUM
      • 40% have more than 5Lakhs.

We have made a recent change to improve the user experience and try to fulfill the rebalance completely when funds arrive in the user’s account on the next day.


Changes to the rebalance flow on Kite

With the new product changes, an automatic basket order will be set up for unfilled Buy orders that face the MarginExceeded Error which arises due to the 80%-20% Margin release rule on Sell proceeds. But if the user wants to complete the order at the same time, they can add the required funds and place the complete order without the need for Automatic execution on T1.

There are 2 scenarios on how the user can place the pending rebalance order.

Buy < Sell Amount

Buy > Sell Amount

No additional funds are required to complete the rebalance order. 

Additional funds are required to complete the rebalance order. User must add minimum or complete funds. 


Basket will be created to execute on T1 only for the unfilled Buy orders due to MarginExceeded error

Basket will be created to execute on T1 only for the unfilled Buy orders due to MarginExceeded error



Users get ONE option because the order will be executed automatically and a basket will be created.

1. Add the 20% of funds now and execute the order instantly


The user gets TWO options:


1. Add Minimum funds which is only the difference of Sell Amount - Buy Amount. 
In this case, a Basket will be created to execute on T1.

2. Add entire Funds which is the 20% of the sell amount + Difference of Sell Amount - Buy Amount

Note:
Users don’t have the option to continue anyway without adding the funds.



Things to Note

  • If the user has deleted the basket in Kite, we detect it automatically and create a repair order in the user’s smallcase for the unfilled Buy orders. 

  • At any point, the user can also place the orders manually by adding funds from smallcase UI using the Place Partial Orders CTA 

  • Basket is created only if all the buy orders are unfilled just because of the MarginExceeded Error. For any other errors the same method as earlier is followed. 

  • Once the basket is executed, it will be deleted immediately once the order is applied in smallcase.

  • Buffer value is added on top of buy value to accommodate DP charges and price movements. Max(16*No of sell orders, 2% of Buy Value)