Zerodha braces for up to 50% revenue hit

Zerodha

BENGALURU Even as brokerage firm

Zerodha

is witnessing its revenue and profit plateau, it’s

bracing

for a 30% to 50% hit in its revenue later this year due to new regulations relating to derivative products introduced by

Sebi

.
The

first rule

, effective Oct 1, is a ‘true to label’ circular which requires market infrastructure institutions to be transparent in their charging practices.

Zerodha founder and CEO Nithin Kamath estimates that this will lead to a 10% reduction in its revenues. The second rule, which is currently in the consultation stage, focuses on index derivatives.