Demonetisation positive for stock broking biz: Zerodha

Demonetisation will come positive for stock broking firms as informal out-of the market 'dabba trading' gets a jolt with the action, encouraging people to come under formal trading route, an industry official said.
"Post-demonetisation, there will be a decline in people opting for dabba trading firms," online brokerage firm Zerodha Co-Founder & Head of Trading Nikhil Kamath said today.
Settlement for dabba trading involves unaccounted cash transactions.
"Once demonetisation is through, people will not go to dabba traders for using the unaccounted wealth. They would prefer people for low charges from formal brokers like us," Zerodha AVP Sales Shubhayu Bhol said.

According to Kamath, the company has earlier this year launched a multi-lingual web and app based lite trading platform 'KITE' in Bengali and other few regional languages which has driving healthy 30 per cent growth in clients.
The Bengaluru-headquartered online brokerage firm claimed currently it has close to 200,000 clients contributing an average daily retail turnover of five per cent of NSE volume.