Zerodha CEO Nithin Kamath shares pitfalls of broking business, wonders: Why the brokerage business looks so sexy

Concentration Risk: The Unseen Threat

Kamath’s warning is not without merit. The Indian broking industry has been plagued by concentration risk, where a small number of active traders contribute to most of the exchange turnover. This phenomenon has been exacerbated by the rise of online trading platforms, which have made it easier for traders to enter and exit the market quickly.

Sreenivasulu Malkari

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