SEBI's New Rules and Impact on Zerodha 1. True-to-Label Circular (Oct 2024): Stricter regulations on promoting derivatives may reduce Zerodha's revenue by 10%, shifting focus to simpler products like equity and mutual funds. 2. Index Derivatives Changes: Higher margins and tighter rules may lower F&O activity, causing a 30-50% revenue drop. 3. BSDA Fee Caps: Revised thresholds for low-cost demat accounts could reduce Zerodha's fees but attract cost-sensitive investors. 4. Referral Guidelines: Limiting referral incentives to registered agents may slow customer acquisition. 5. Increased STT: Higher transaction taxes discourage trading, reducing brokerage revenue. Zerodha’s Response: Diversifying into margin trade funding, promoting long-term investing, enhancing tech platforms, and focusing on sustainability to adapt to reduced reliance on F&O trading.
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