Lauding the capital markets regulator Securities Exchange Control Board of India (SEBI), Nikhil Kamath, co-founder Zerodha today mentioned that the regulatory body has worked towards safeguarding investor’s interest. Speaking at Express Idea Exchange, Nikhil Kamath mentioned that SEBI has been ahead of the curve that has helped India steer clear of crises such as the current Gamestop saga or even the 2008 banking crisis. Kamath, who is also the Chief Investment Officer of True Beacon, an Alternative Investment Fund also commended the Reserve Bank of India (RBI) for its function in safeguarding investors.
Shedding light on SEBI’s function, Nikhil Kamath mentioned that the regulator keeps a variety of tools at its disposal which have produced it practically not possible for activities such as insider trading in the top corporations. Although he did agree that the smaller sized corporations nevertheless carry some threat on that front, he advised investors to remain away from little caps and penny stocks. Kamath’s comments came soon after investors in the United States saw a quantity of lesser-identified penny stocks skyrocket in the course of the last couple of quarters of the preceding fiscal year.
Discussing the startup ecosystem in India and the rise of quite a few unicorns in India, Kamath mentioned that the valuations had been also higher to sustain. He believes a correction in such valuations could be in the offing. India lately saw a quantity of startups attain unicorn status, attracting funds from a variety of international investors. Zerodha itself became a unicorn last year and Nikhil Kamath mentioned even the valuation of his personal firm does not appear justifiable to him.
Further, diving into why Zerodha has not however gone public, Nikhil, who began the corporation with his brother Nithin Kamath reiterated that they want to remain independent as it permits them to take choices on their personal. He mentioned that with VCs and other investors on board, the corporation would not be in a position to make independent choices like they continue to do so today. Earlier Nithin Kamath had mentioned that Zerodha is working to construct a platform that positive aspects the retail investors which would be unlikely with other investors on board, who would rather look for income than safeguarding retail investors.
Zerodha is the biggest brokerage firm with a substantial quantity of retail traders working with the platform. The discount brokerage model that was pioneered by the corporation has helped it develop swiftly in current years and overtake conventional brokerages such as ICICI Securities and HDFC Securities.