Nithin Kamath says Zerodha may end zero brokerage structure for equity delivery trades after Sebi order

Zerodha co-founder Nithin Kamath announced on social media that the brokerage may need to reconsider its zero brokerage model or increase F&O (futures and options) fees following a new SEBI circular mandating standardized fee structures for market infrastructure institutions. Kamath explained that since 2015, Zerodha subsidized equity delivery investments with revenue from F&O trading, but the new regulation could force them to introduce brokerage fees for equity delivery or raise F&O fees. SEBI's move aims to curb the practice of offering reduced fees for high trading volumes and ensure standardized charges. Kamath noted that these rebates, which make up 10% of Zerodha’s revenue, will be eliminated, impacting brokers across the industry.