Comment on Zerodha-Fund withdrawal from Trading account

Nithin Kamath commented on 27 Nov 2013, 08:50 AM

Venkat,

Firstly, our exchanges and regulators have done a brilliant job over the years to ensure that client funds are secure. There is also an investor protection fund setup in case there is a casualty and the good thing to know is that it has not been used even once.

Coming back to Zerodha, we have been a profitable business from the start with a QOQ growth and probably among the most profitable retail brokerages in the country. There is zero debts on the books and we are very conservative in terms of leverage. We don’t have any HNI clients who get special deals on leverage or get into any margin funding activity. Some of the reasons above are usually the culprits for bringing down a financial services business and we try to stay as far away from those as possible.

Hopefully this helps,

Cheers,

Nithin

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