Zerodha is one of the biggest names in the realm of today’s equity market. It, according to many, has revolutionised the world of trading and the markets at large.
Today, the company is one of the many to make a mark, with a boom of virtual trading platforms. The company CEO and co-founder Nithin Kamath recently took to X to talk about his company’s policy on levying no brokerage on equity delivery.
Zero Brokerage
Here, Equity delivery means the process wherein the investor acquires some shares and keeps them in their Demat account for some time.
Once the shares are delivered to the investor, they can keep them for as long as they wish in delivery trading.
When investors buy stocks, they own them outright and can sell them whenever you want to make money.
Talking about the policy, Nithin Kamath, in his post on X, “It’s been around 10 years since we waived off brokerage for equity delivery. Even though there is extreme pressure to change the stance, given option trading volumes are down significantly, we’ve stuck with this so far.”
The company which was started in 2010 is fully owned by the Kamath Family, which apart from Nithin Kamath, also includes his brother and co-founder Nikhil Kamath.
Zerodha Vs Groww
The company has often ruminated over going public with an IPO but has shied away from doing so. Going public would require the company to at least sell 25 per cent of the stake to outside entities, as per SEBI rules.
The company, which remained at the pinnacle of the biggest trading platforms in India, lost its crown to rival company Groww in 2023, when the latter took over the pole position, which it continues to hold.
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Kamath further added, “Over the 10 years of being free, our clients have saved between Rs 2000 and 20,000 crores as equity delivery brokerage. And yeah, Zerodha = Zero + Barriers (Sanskrit), not Zero + brokerage.”
The company, which remained at the pinnacle of the biggest trading platforms in India, lost its crown to rival company Groww in 2023 when the latter took over the pole position, which Groww, run by Nextbillion Technology Private Limited, continues to hold.
As according to NSE data from 2023, Groww had 6.63 million active investors and Zerodha had 6.48 million.
