After 40% hit from F&O Curbs, Zerodha’s Nithin Kamath of Brokerage Pivot warns as weekly options

After Zerodha has already taken a hit of a whole series of regulatory measures in the futures and options Arena, Zerodha said that it might now be forced to take a brokerage pivot if regulators continue with their reported plan to curb or even delete weekly options. In a blog, the leading brokerage of India said that it might be forced to charge brokerage costs for transactions of shares into such a possibility.

In a candid remark, Zerodha founder and CEO Nithin Kamath admitted that the options-heavy income model is under serious stress.

“Regular actions, whether it is the decrease in transaction costs income, the increase in the securities transaction tax (STT) on F&O, the proposal to make futures and options, asba for trade, the increase in the BSDA limit, etc., to have a significant impact on our income and profitability.

Weekly index options are good for most of the retail trade in derivatives, and brokers such as Zerodha have long been familiar with high trade volumes in this segment to keep their zero-brokerage-delivery model sustainable.

But with the government that lifts the STT, whereby the discounts of the reimbursements are removed and regulators in intraday F&O standards, the pressure is mounted.

The last concern is that supervisors are discussions that evaluate a complete stopping of the weekly options. Kamath warned that if this happens, Zerodha would have little choice, but to start charging transactions of shares, something that has kept it free to attract millions of first investors. The impact of different curbs since October last year is already visible in figures. According to Kamath, the Brokerage income from Zerodha in the quarter of June 2025 can cost a 40% hit compared to the same period last year. New account openings have also been delayed in accordance with the softer market activity, even after the opening costs of the broker were canceled in 2024. Still, the company retains almost 10% of the share of all retail and HNI assets in India and has grown its Margin trade facility (MTF) book within nine months to approximately RS 5,000 crore.

“Market cycles surpass many business decisions,” Kamath said, and noted that the long -term philosophy of the company and the lack of external investors allows it by driving the decline.

For retail traders, a potential prohibition on weekly options can significantly reduce the opportunities for bets in the short term. Although the relocation can lower the systemic risk, it would also reduce the speculative turnover that keeps the listed companies profitable.

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