As per regulations, traders must maintain at least 50% of their collateral in cash or cash equivalents for intraday positions, the Economic Times reported.
Those who meet this requirement will continue to pay the existing lower brokerage. This means the impact is limited to a specific segment of active traders.Until now, Zerodha covered the shortfall for traders who didn’t have enough cash collateral.
The firm used its own funds to meet regulatory requirements without charging users extra. With the new rule, that support is being withdrawn.Traders who fail to maintain the 50% cash collateral will now be charged ₹40 per order.
The decision is driven by tighter regulatory enforcement and changing market conditions. SEBI has been strict about margin and collateral norms, restricting brokers from using their own funds to support client trades.
At the same time, derivatives trading volumes have declined, impacting brokerage revenues. Zerodha has seen a significant drop in earnings from trading activity.
Last year, Zerodha CEO Nithin Kamath warned that regulatory changes in the F&O segment could put pressure on the company’s business model and even threaten its zero-fee equity delivery trading.
The company at the time saw around a 40% drop in brokerage revenue, mainly due to stricter rules by the SEBI. These included higher transaction taxes on derivatives, removal of exchange fee rebates, and tighter intraday trading norms.
Last month, Nithin Kamath also said the new lending rules introduced by the Reserve Bank of India will not impact Zerodha users, as the company has no external financing and operates as a self-clearing broker. While Zerodha clients remain unaffected, Kamath said that costs will rise for the brokerage industry overall.
