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Zerodha’s co-founders, Nithin and Nikhil Kamath, aim to transform the company into a full-fledged bank despite regulatory hurdles.
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Zerodha has faced challenges securing a banking license, with SEBI’s new regulations potentially impacting 60% of their F&O trades.
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The company is diversifying into public market investments, loans, and insurance, while advocating for transparency and community-driven finance.
Zerodha, India’s leading discount broker, has set its sights on becoming a bank. Co-founders Nithin and Nikhil Kamath are driving this ambitious goal, despite years of struggling to secure a banking license. Zerodha has revolutionized stockbroking, capturing 17% of the market share, but the Kamath brothers are eager to expand.
However, regulatory challenges persist. SEBI’s upcoming rules targeting F&O trades may impact 60% of Zerodha’s business. Nikhil Kamath expressed frustration with the unpredictability of regulatory decisions, which can significantly affect their revenue. To mitigate risks, Zerodha is diversifying into public market investments, loans against securities, and insurance.
Nikhil Kamath envisions Zerodha as a transparent, community-driven financial institution offering banking, borrowing, and insurance services. He advocates for more banks like Zerodha, emphasizing the need for innovative, customer-centric finance. As the company navigates regulatory hurdles, its commitment to transparency and community-driven finance remains unwavering.
