Jio-Blackrock will expand Indian stock market, but not a threat to first-generation founders, says Zerodha's Nitin Kamath

New Delhi [India], July 3 (ANI): If any company can expand the current market, it is Jio-Blackrock with its huge distribution network, but it will not be a threat to first generation founders noted online brokerage platform Zerodha's Chief Executive Officer (CEO), Nithin Kamath, on the social media platform 'X'.

Nithin Kamath via his post on 'X' expressed optimism regarding the same. He said, "Many people asked me about Jio-BlackRock getting a stockbroking license. Firstly, this is great news."

Kamath further added that, "If anyone can expand the markets beyond the top 10 crore Indians, it's probably Jio with all its distribution might."

However, he also raised concerns about the expansion of the Indian stock market. "The biggest issue for the Indian markets is a lack of breadth in participation. We're largely limited to the top 10 crore Indians," he said.

Kamath also shared his opinion on what his thoughts are on broking. He believes that Zerodha is not something which is following 'vanity metrics' and the principle online brokerage platform is to 'stay to stay profitable.'

"At the heart of our philosophy is to always do the right thing for customers," Nithin Kamath said.

Kamath also emphasised that Zerodha's strategy is not to pressure consumers to trade and to make sure that there are no obtrusive notifications, dark patterns, etc., adding that customers who trade less have a better chance of long-term success.

However, Nithin Kamath also reflected on the role of other financial services businesses in the sector, who are constantly seeking to grow their business at any cost.

"And yeah, I still feel our real competition is going to be more from first-generation founders who are running, breathing, and always thinking about broking. I somehow don't feel it will really come from incumbents. This is not a business where having deep pockets means you have a large moat," said Nithin Kamath. (ANI)

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