Demonetisation will come as a disincentive for ‘dabba trading’ firms; while brokerage firms including online ones like ‘Zerodha’ will gain from it.
According to Nikhil Kamath, Co-Founder & Head of Trading, Zerodha – an online brokerage firm – post demonetisation there will be a decline in people opting for dabba trading firms.
Dabba trading, considered illegal, is like running a parallel stock market, with unaccounted money involved in the dealings.
“Once demonetisation is through, people will not go to dabba traders for using the unaccounted wealth. They would prefer people with low brokerage charges like us,” he told reporters here.
The Bengaluru-headquartered online brokerage firm currently has around 200,000 clients contributing an average daily retail turnover of five per cent across exchanges.
Multi-Lingual Trading PlatformAccording to Kamath, the company has earlier this year launched a multi-lingual web-based trading platform ‘KITE’ in Bengali this year.
Currently, Zerodha has 70,000 users in Bengal of which 70 per cent use Bengali.
There has been a 30 per cent surge in the brokerage firm’s client base within eight months.
“The plan is to further expand to the other districts in the State by the end of this year,” the co-founder said.
Apart from Bengali, KITE is currently available in nine other regional languages that include Hindi, Marathi, Gujrati, Punjabi, Kannada, Tamil, Telegu, Odiya and Malayalam.