Knowing the cost price of the Equity Holding and the current P&L of the same has been a long drawn requirement. Soon you will be able to see the details of your investment amount and the profit or loss made on the same at current market price in INFINI Trading Solutions (ITS).
How is Cost Price calculated?
To calculate the cost price, the cost of recent purchases done equivalent to the DP holding quantity is taken into consideration. Find below an illustration on how Cost price is calculated:
If you hold 100 shares of X company in your DP Account, then the price at which you had bought the last 100 shares is the cost price
If you had bought the last 100 shares on multiple dates at different rates, then the weighted average price is considered the cost price.
Example for calculation of cost price:
|Purchase date||Purchase rate||Purchase QTY||Sale date||Sale rate||Sale Qty|
|2 Feb 2017||100||100|| || || |
|18 June 2017||120||200|| || || |
| || || ||19 Dec 2017||140||50|
|15 March 2018||130||50|| || || |
| || || ||12 April 2018||145||100|
Now for the above example the Net qty is 200 in DP holding and cost price would be calculated as weighted average (50*130 + 150* 120) / 200 = 122.5
Can the Cost Price shown in INFINI POWER be completely relied on for booking profit/loss and for IT filing purposes?
The logic adopted for calculating takes best effort to indicate the Cost of your holding while you trade. Cost price might not be accurate/available in the scenarios below:
- Where purchase price is not known like Bonus / Rights/ IPO etc. In this scenario the BUY Price will be shown as “NA”
- Where shares are purchased prior to April 1st 2016.In this scenario the BUY PRICE will be shown as “NA”
- Where part shares are purchased prior to April 1st 2016. Example if client has bought 50 shares inJan 2016 and balance 50 in September 2017 and in total client has 100 shares then since system does not have cost price for the entire 100 shares it would not calculate the cost price. In this scenario the BUY PRICE will be shown as “NA”
- The cost price could be wrong in case the latest shares pertain to Bonus/Right/IPO shares. For example if client has bought 100 shares on Jan 2017 and again got 100 shares as bonus/FPO/Rights in Feb 2017 and then sold 100 shares in March 2017 – hence net qty would be 100 and cost price calculation would be wrong as system would consider the cost of the 100 shares purchased on Jan 17and not the cost of the bonus/rights/FPO as the same is not known to system. Hence in such cases cost price would be wrong since P&L is calculated on FIFO basis.
- Where the shares transferred to the DP account with Tradeplus through Off-market transaction. In this scenario the BUY PRICE will be shown as “NA”
Note: Where the BUY PRICE is “NA” the P&L figure will also be shown as “NA” for that given scrip.