Tag: Zerodha

SEBI recently published a consultation paper on index derivatives that was open to public comments….reports Asian Lite News

Online brokerage firm Zerodha’s Co-founder and CEO Nithin Kamath said on Tuesday that the company is witnessing revenue and profit plateau, and is bracing for a big revenue hit later this year.

In a blog post, Kamath said that SEBI’s true-to-label circular will go live on October 1, 2024 and “we expect a 10 per cent revenue dip”.

SEBI recently published a consultation paper on index derivatives that was open to public comments.

“We expect this paper to materialise into regulation sometime in the next quarter. Index derivatives today are a significant portion of our revenue, and any change will impact us. We anticipate a 30 per cent to 50 per cent drop in revenue,” said Zerodha CEO.

The Securities Transaction Tax (STT) also goes up from October 1.

Although the impact on options trading is minimal, “we anticipate a significant impact on futures trading”.

“The amount of Annual Maintenance Charges (AMC) we collect changes with the new Basic Services Demat Account (BSDA) thresholds set by the regulator. Essentially, we can charge full AMC from customers with a demat holding of Rs 10 lakhs and more, as opposed to 4 lakhs today. Combined with us removing the account opening fee, this would be a meaningful drop in revenue,” said Kamath.

Zerodha’s total current assets under custody — total assets held in its demat accounts — stand at Rs 5.66 lakh crore.

“The exciting bit about this number is that our customers as a whole are sitting on an unrealised profit of more than Rs one lakh crore,” the CEO informed.

On its IPO, he said that an IPO is not the end, but rather a new beginning.

“When retail investors enter the cap table, the company should be able to predict revenue to some extent. In the last 14 years, I have not once been correct in predicting revenue growth and dips. Our business, while it looks good based on financials, can change in a heartbeat due to a change in regulation or markets taking a turn for the worse,” Kamath explained.

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The initiative focuses on individuals who have the potential to revolutionise their industries through creative ideas and compelling visions…reports Asian Lite News

Leading stock broker Zerodha co-founder Nikhil Kamath on Monday launched a non-dilutive grant agnostic fund ‘WTFund’, dedicated to nurturing young, promising entrepreneurs aged 25 and under.

This initiative focuses on individuals who have the potential to revolutionise their industries through creative ideas and compelling visions.

“Today, young founders tend to create the most impact within entrepreneurship. At WTFund, our goal is to cultivate a culture that encourages young entrepreneurs to embrace risk by providing a comprehensive support system,” Kamath said in a statement.

The fund offers a comprehensive package including a non-dilutive grant of Rs 20 lakh, enabling founders to retain full equity in their ventures.

Additionally, the fund provides access to operator-first mentorship pods, a vibrant community through the WTFund ecosystem.

Forty young entrepreneurs will be selected for funding and mentorship over one year.

They will undergo a rigorous screening process and receive support until they secure their first institutional funding.

The WTFund is open to investing in all sectors. This initiative will provide a comprehensive growth platform for emerging founders, creators, makers, and dreamers, offering them financial support and a unique opportunity to engage with a vibrant community of like-minded individuals.

Meanwhile, sharing an image on the social media platform X promoting a WhatsApp group to join for stock tips, leading stock broker Zerodha co-founder Nikhil Kamath on Friday said it’s a scam.

He asked users to report the advertisement, saying that he never had any WhatsApp group for stock tips.

“Scam alert, this is obviously not from me, I have never had or have any WhatsApp groups, nor do I give tips etc. Please report these,” Kamath wrote.

“Also to all the brands who reach out, I don’t do paid promotions/collaborations/ads/paid speaking engagements of any kind,” he added.

A lot of users reacted to Kamath’s post and appreciated him for alerting them against such scams.

“By sharing these scam alerts, you’re not just protecting yourself, but empowering your entire community to spot and avoid these predatory tactics,” a user said.

“It’s great to see you taking a firm stance against paid promotions and collaborations. Your authentic voice and content are what truly resonates with your audience,” another user wrote.

One more user mentioned, “It takes courage to turn down lucrative opportunities, but you’re clearly committed to preserving the integrity of your platform.”

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