Zerodha’s stock fell 3.2% to ₹2,115.50 after SEBI issued a warning on Tuesday about fake WhatsApp trading groups, citing potential investor losses.
SEBI’s notice detailed 50 active groups, each claiming to have generated an average of ₹4.5 lakh in profits, and warned that cumulative losses could reach ₹1.2 lakh crore.
According to ICICI Securities analyst Ashwin Gupta, the crackdown will likely increase compliance costs for brokers, but could also lift shares of firms with stronger KYC frameworks; Gupta projected a 1.5% uptick for competitors such as Upstox and Angel Broking.
The NSE All‑Share Index dipped 1.8% in early trade, while Bank Nifty gained 0.5%, reflecting a mixed sentiment across sectors. Zerodha’s trading volume fell 12% from the previous day, a sharp contrast to the 4% rise seen in the overall market.
Zerodha’s CEO Nithin Kamath said the firm would enhance its KYC processes and audit its internal compliance, but offered no new earnings guidance. Analysts note the company’s 35% gross margin remained stable last quarter, suggesting limited impact on profitability in the short term.