Zerodha co-founder Nithin Kamath has announced via his Twitter handle that the securities and exchange board of India(Sebi) has approved the application of Zerodha to provide mutual fund services. The firm had applied for a mutual fund license in February 2021.
Zerodha’s MF Approval by Sebi
Zerodha has added one more feather in its cap by getting the in-principle approval of mutual fund license on September 1. The company co-founder Nithin Kamath revealed the above news on the microblogging site Twitter. The firm applied to Indian authorities half a year back.
With current approval, Zerodha is now all set to launch its asset management company (AMC). The largest Indian brokerage firm plans to start it in under a year.
Zerodha is committed to bringing transaction costs down in its discount brokerage services. The company planned to launch low-cost funds to achieve that target.
Talking about the mutual funds offering by Zerodha, Nithin Kamath, founder, and CEO of Zerodha said, “Passive, simple, cheap index-traded funds will be on offer. Mutual fund products need to be simplified to attract investments from young investors.”
Zerodha was founded in 2010 to offer low brokerage on online trading. The firm started its operations by ‘Rs 20 per order broker’. Within a limited period, Zerodha became one of the known online brokerage firms due to a no-frills, low-cost player among traders, especially high-volume derivatives traders.
Currently, Zerodha’s online platform helps in executing four million trades a day. The coin platform launched by Zerodha has become an instant hit among retail investors due to the direct option of mutual fund schemes. Coin today currently has assets under management (AUM) of Rs 5500+ crore.
Zerodha is a bootstrapped startup that has reached the top position after competing against highly funded startups. It became possible due to the extraordinary efforts of co-founders of Zerodha, Nithin, and Nikhil Kamath. The company also joined the unicorn club last year.
As a reward, the Zerodha board of directors has approved a whopping salary amount of Rs 100 crore each for the Kamath brothers. Seema Patil, the whole-time director and spouse of Nithin Kamath is also getting Rs 100 crore as salary.
A few months back, Entrackr also reported that the Zerodha board has also approved to invest up to Rs 1500 crore in other operations via loans, securities, and guarantees.