Zerodha’s co-founder Nitin Kamath and his brother Nikhil Kamath have raised concerns about the startup ecosystem. Kamath brothers said that excessive regulation can stop growth and in the long run it can have an adverse (negative) effect on the startup ecosystem. In a podcast of CNBC-TV18, Kamath and his brother said – We are under regulators on whom we have no influence and we have no access to their decisions, but with their decisions they can reduce our revenue by 50% in a day. They can also close our business forever. Giving an example, Kamath said that in a class of 50 children, the teacher makes rules and scolds and reprimands the children at will. Can innovation come out of those children who are already living in fear, probably not. However, Nikhil Kamath also said that Indian regulators have improved the system a lot over time. Nitin Kamath said – running a broking firm is a tough job
Nitin Kamath said that Zerodha’s revenue is expected to decrease due to the new rules implemented by the Securities Exchange Board of India (SEBI). He cited the True-to-Label circular as an example of regulation that could harm the company’s profits. Kamath said that running a broking firm is a tough job. Despite all these things, Kamath remains very optimistic for the future. Kamath brothers want to convert Zerodha into a bank
Kamath brothers want to convert Zerodha into a bank. They have expressed grief over the fact that despite all the efforts made in the last several years, banking license has not been received. Nitin Kamath had also spoken on this circular 3 months ago
3 months ago, Nitin Kamath wrote on the social media platform X – SEBI has recently issued a circular. It states that Market Infrastructure Institutions (MIIs) like stock exchanges will have to levy charges ‘as per the label’ from October 2, 2024. This circular will not only affect brokers but also traders and investors. It is quite likely that the zero brokerage structure will have to be abandoned or the brokerage for FO trades will have to be increased. Brokers across the industry will also have to revise their prices. Why did SEBI issue the new guideline?
