Zerodha entry lifts BSE’s options game
MUMBAI : Clients of India’s largest stock broker Zerodha are one of the driving forces behind BSE’s growing success in the derivatives segment since May 2023, after the exchange’s two decades of attempts to gain market share went in vain, people aware of the matter said. Interestingly, a spurt in Sensex volumes coincided with Zerodha teaming up with two related entities to raise its total shareholding in the exchange. The market share of BSE in the derivatives segment, dominated by National Stock Exchange (NSE), rose from a mere 0.004% in the June quarter to 7.38% in the September quarter and further to 15.8% in the December quarter.
In the June 2023 quarter, Zerodha held 3.7% stake in BSE as a non-promoter non-public shareholder, and its name didn’t figure in the public shareholder category, NSE data shows. At the end of September quarter, Zerodha, acting in concert with NKSquared and Kamath Associates, held 4.39% of BSE’s equity capital. As Zerodha is shown as non-promoter non-public shareholder with 3.7% in the September quarter, this implies the other two entities purchased 0.69% during the period.
NKSquared Global was founded by Nikhil Kamath, who along with his brother Nithin Kamath, is Zerodha’s co-founder. Kamath Associates was set up as a sub-broker to Reliance Money in the 2000s. In 2010, the Kamath brothers co-founded Zerodha, which claims to be India’s largest stock broker contributing 15% of all daily retail order volumes in futures and options (F&O), stocks and initial public offerings, among others.
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