I saw a thread on twitter talking about some rumor of SEBI taking a strict action against a big broker. I then got a whatsapp forward talking about some SEBI enquiry going on against Zerodha. Any truth behind all this @nithin?
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As we have grown as a business, the number of people wanting to bring us down continues to go up. We are by far the largest retail brokerage in terms of trading turnover and 2nd largest by active clients today. There is no truth behind any of this. There is no SEBI enquiry going on.
I think the rumor has started because SEBI recently sent a show cause notice to brokers who facilitated trading in NSEL (National Spot exchange Scam). The notice further says that these brokerages no longer meet the fit and proper person criteria and should not be allowed to continue as intermediaries. We were never part of NSEL. Check this article
This notice has been sent to around 300 brokerage firms, including 5 big ones. Since the article says 5 top brokerages, I am guessing it is someone’s wild imagination to include us as part of it.
Also check this, which I had answered few months back
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