Comment on Online pledging of stocks for trading F&O

1. When the margin money is paid to Stock Exchange, is it like a pool or is it paid customer-wise (like in Equity segment)? In other words, does the Stock Exchange know against which customer account the margin has been provided?

2. Earlier, Zerodha was not financing so there was no risk of default by customer, but now that risk exists, even if low. What happens when a customer defaults? How do other customers get affected? Supposing I have some balance with Zerodha. What is the possibility that this balance is used towards margin payment for other customers and then not returned due to other customer’s default?

3. What are your risk management guidelines? As you don’t distinguish between a person having 90% margin (low risk) and having 20% margin (high risk), how do you evaluate risk? Or do you consider risk for all customers as equal?

4. Is it possible to share Zerodha’s financial statements?

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