A stock broker, being a financial intermediary, has been entrusted with the responsibility of having effective surveillance mechanisms in place by the market regulator SEBI, the stock exchanges (PDF), and the depositories (PDF). As part of this surveillance monitoring, brokers are required to review client transactions, flag trades, and seek suitable clarification and the rationale behind carrying out such trades to establish the genuineness of the trade.

In addition to broker systems generating such alerts, the stock exchanges also flag some transactions themselves and require brokers to ask their clients for explanations concerning such transactions. Brokers are required to update the stock exchange on the action taken against the surveillance alerts generated by the exchanges.

Clients have received this email in respect of such an alert generated by the stock exchange system or regulator-specified internal surveillance system. Provide the required information by creating a ticket. When Zerodha receives the information, it sends an acknowledgement email to clients and, if necessary, takes action.