Zerodha is 13 years old today. Looking back, we got lucky with many things to get here, including the fact that we are building at a time when India is growing fast. Looking ahead, India still is the place to be for young entrepreneurs dreaming of building something, given our immense potential. For our anniversary, some of us from the core team are doing an Ask me anything (AMA) session tomorrow. If you have any questions for us, post them below, and we’ll answer as many as we can and publish the video.
If you can share, What is the average and median Holdings (in INR) per customer at Zerodha? Also what is average and median daily trade size per trader at Zerodha? Is there a shift towards trading vs investing in last 3 years? What stats that you probably have access to say about this?
With tighter regulations coming in like mandatory quarterly fund transfer to bank account and the possibility of implementation of ASBA like blocking of funds instead of transfer to broker’s account, how would this affect Zerodha and Long Term Investors/ Traders in terms of cost of running business and trading?
@nithin Ji , Is the scope of questions on this AMA limited to Zerodha and its eco-system? Or, will you be happy to entertain questions related to your personal outlook on general aspects of life and philosophy?
A slightly off topic Query and apologies in advance for longish post for simple ask
Coin is indeed bold step where Zerodha offered MF in DMAT format. There has been lot of discussions about pros and cons. Without going into those… The relationship (of DMAT for MF holdings) to KFINTCH,CAMS is not well defined and that creates issues for the common investor. My observation is KFINTECH has DMAT MF holdings transaction history but CAMS do not have .
After number of email exchanges with KFINTECH, CAMS and Zerodha support team, realized that all DMAT MF holding transaction data is available with KFINTECH, CAMS. There is general excuse that it is not real time data ( I think a day old data).
My Query is
Are you planning to take up with both KFINTCH,CAMS to do record keeping for MF DMAT mode holding in same format as traditional folio holdings?
it will help in getting consolidated report of all transactions in irrespective the holding in DMAT mode or not.
On MFCentral DMAT MF holding transactions are not visible as of now. if both KFINTCH,CAMS maintain MF holding in DMAT form same as they maintain in physical form MF holdings, it should be possible.
As zerodhafundhouse is on the verge of launching mutual funds , I think it would be nice gesture if you can work with CAMS,KFINTECH to include MF folios in DMAT format transactions in Consolidated Account Statement as well as in MFC central
This query has been already posted in ordinary AMA. It is not answered so far. It is reposted here.
It is purely of academic interest the question is raised. Why does nifty index increase/decrease during the per-open order period. Does mere order placement increases or decreases the Nifty. From 9.08/9.10 to 9.15 it becomes fixed until market opens. Thereafter nifty moves on executed trades and not on order based trades. Does that mean during the order colllection period , orders move the Nifty up and down and when the trade opens the opposite is true. That is, executed orders move the Nifty up and down and also for all shares. Is that the way the algoriithm is set. I could not get a plausible explanation.
Zerodha has great tech. What is preventing you from expanding into international markets? I dont think regulations are as tight as in India and you have enough accruals for international expansion. So why wait ?
It will take us a bit to put up the AMA video. Hence answering some of these queries.
We did attempt for a bit back in 2019 to see if what we have built can be replicated in other parts of the world. I spent some time talking to folks in the US. But the realisation quickly was that every market differs regarding the underlying market infrastructure and regulations. It isn’t possible to cut-copy paste anything we have built to another market easily. And hence we decided to focus only on India. In anyways, we believe the biggest opportunity in the world lies here in India.
Within India, brokers have asked us if there is an opportunity to lease out our tech. This isn’t an opportunity we are interested in. We don’t want to enter the services business, at least for now.
By the way, everything that is not core to the business, K (Kailash) and our tech team have open-sourced it. Check out https://listmonk.app/
Looking back, I think the journey when we were smaller was more fun. Today being large brings in different types of problems that require a different type of skillset. But that said, it would be hypocritical to not acknowledge the freedom that financial success can bring. For example today as Zerodha we have almost like a 20 year runway, so helps me sleep better.
For the first time in 2017/2018. This was when the business had built some credibility, we had superior products and offerings (yes, I am conflicted ), Aadhaar for online onboarding, UPI for payments, and an underlying bull market.
About ASBA like blocking of funds, I think will remain optional. It will mostly be allowed I think for equity investors only, the ones who buy stock paying the full amount.
For brokerage firms, there will be added effort & risk. Also, there is no clarity on how the broker will be able to collect the brokerage fees. All of this could potentially mean that the brokerage charged for equity delivery trades will be higher through ASBA.
Those coming through this mechanism will have some restrictions. For example, if someone buys a stock and instantly wants to sell it, will not be possible.
We will need to wait and see how this plays out. For the end user, it is going to remain optional so nothing will change unless someone wants a change.