What is The Business Relations Between Zerodha & IL&fs?

What is The Business Relations Between Zerodha & IL&fs ? @nithin

Hey @ad09

IL&FS has a subsidiary - IL&FS Securities Services Limited (ISSL). ISSL is a professional clearing member i.e they clear and settle trades executed for their clients (individuals & institutions).

Zerodha is a self-clearing member of the Cash Segment. However, for clearing derivatives, currency & commodity trades, we employ the services of ISSL. More than half of all trading members in the broking industry use ISSL as their clearing members.

I’m assuming this may lead to apprehension given the IL&FS crisis.

Although ISSL is a subsidiary of IL&FS (Infrastructure Leasing & Financial Services), it is a separate entity. Due to this, the Il&FS crisis hasn’t had much of an impact on ISSL. In fact, ISSL reported a profit of Rs 45 crore on revenue of Rs 324.5 crore in the last financial year.

As, per its annual reports, the year before, its revenue was Rs 342.65 crore. It has more than 1,000 broker client accounts and has foreign portfolio investors and foreign institutional investors on its customer list. The company does more than 3 million transactions every day on stock exchanges. ISSL’s volumes have grown consistently over the years and client acquisition remained strong in its three key verticals: clearing, custody and fund accounting.

Apart from this, businesses like ICICI Bank, HDFC Bank, Axis Bank and IndusInd Bank are looking to acquire ISSL. Due to these, reasons you can rest assured knowing that the IL&FS crisis will not have any adverse impact on ISSL and Zerodha.

Ok… Thanks for clarification…