Stock Broking Forays

Hey @nithin Why Companies like Paytm,Groww started stock broking services & now News Brokeout that Phonepe is the in the list to enter stock broking company. Is stock market bussiness is much lucrative as compared to wallet/upi services? Why are these companies entering into stock broking companies while they know there core business can get affected. And how can a company who gets digital bank license can get broking license, these can lead to several manuplations & fraud as money lied with them can be used in buying particular stocks. Also as a founder of zerodha can you enlighten us how you’ll deal with New Players in broking sector as these new players has already a big chunk of customers with them so existing customers may open demat accounts with them. Also is there any possibilities that funds in Zerodha can be added via wallets like paytm or phonepe. Also do you have any planning for zerodha to get NUE License? Thanks in Advance :smiley:.


I don’t know about upi services but if it comes to profit no new age broking is making any profits as of now, fortunately Zerodha is. Currently they are raising money and burning cash to gain client accounts, I can say they are adding accounts by running lucrative offers but need to see if they turn into revenues at some stage. Also currently you can notice every one is claiming unicorn status with out any sustainable business model or running into profits for years. Even if you notice recent move in Dogecoin which is started as a fun coin has hit 50 billion USD this week.

I can say broking is not easy to do as it comes with so many regulations and deep understanding is needed to succeed in it. I am also not saying they all will fail in long term but not all will able to survive with out continuously burning cash, the day this crazy funding bubble burst we can see real winners, till then we need to sit and wait I guess.

Even normal banks has broking license but with different subsidiary, that is normal thing.

We are least bothered with their count as we know broking is different and at the end best product wins at the same time we welcome them as they may bring more users to the ecosystem and help in building it. Also a good competition will help keeping us on our toes and strive hard to offer better service and products.

We already did.


I googled and figured out this is a new upcoming retail payment system involving consortium of companies as 1 group with no company in a particular consortium can have more than 40% weightage. Can anyone explain me - how NUE is different from UPI? What’s new in NUE payment system?

Absolutely True.

UPI is a unique payment services just like rtgs.neft, but more convinient for all people as neft,rtgs needs more info of transferee as comapred to UPI which only need either mobile no. or upi id. UPI is very easy payment service to transfer the funds instantly & also it has no charges which are there in credit/debit card payments. So to grab this oppurtunity RBI Introduced NUE license which will create more unique payment transfer interface & most probably the problem of wallet tranfer will eliminate(eg. from paytm wallet to payzapp wallet etc.). Also if this NUE succeds(high probablity) then these companies will charge money to use their platforms and UI’s and this will increase the competetion.