A

SYNOPSIS
ON
A Study of Discount Brokers in Indian Stock Market with Reference to
‘Zerodha’

Submitted to
G.S College of Commerce & Economics, Nagpur (Autonomous)
Affiliated to
RASHTRASANT TUKADOJI MAHARAJ, NAGPUR UNIVERSITY

In partial fulfillment of the award of the degree of

BACHELOR OF BUSINESS ADMINISTRATION

Submitted by:
Gaurav Jitlal Wasnik

Under the guidance of:

Dr. Kamlesh Thote

G.S College of Commerce & Economics, Nagpur

NAAC Re-Accredited “A” Grade Autonomous Institution

Academic year 2023 - 2024

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 Index

• Introduction………………………………………3-4

• Company profile………………………………….5-6

• Relevance of study………………………………..6

• Need of study……………………………………...6

• Objectives of study……….…………………….....7

• Limitation of study………………………………..7

• Research design…………………………………...7

• Hypothesis………………………………………...8

• Research Methodology…………………………..8-9

• Work Plan……………………………………......10

• Proposed Chapterization Scheme………………..10

• Conclusion……………………………………….11

• Bibliography……………………………………..11

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Introduction

The study examines how Zerodha, a disruptive force in the Indian stock market, has reshaped traditional
brokerage models. It explores Zerodha's emergence, operational strategies, technological innovations, and
impact on the market. By analyzing Zerodha's role as a pioneer in discount brokerage, the study aims to
provide insights into evolving financial markets and technology-driven disruptions.

Disruptive Business Model:

Zerodha's entry into the Indian stock market disrupted traditional brokerage norms by introducing a
groundbreaking business model centered around transparency and affordability. With its innovative
approach, Zerodha democratized stock trading, making it accessible to a broader spectrum of investors by
eliminating hefty brokerage fees.

Technological Advancements:

Zerodha's technological innovations, epitomized by its flagship platform Kite, have revolutionized the
trading experience for millions of users. Offering seamless navigation, real-time market data, and advanced
analytical tools, Kite empowers traders to make informed decisions swiftly, thereby setting new
benchmarks for user engagement and satisfaction in the Indian financial sphere.

Market Influence and Adaptation:

Zerodha's remarkable success has not only reshaped the brokerage industry but has also catalyzed a
paradigm shift in investor behavior and market dynamics. Traditional brokerages are compelled to
reevaluate their fee structures and embrace technology to remain competitive, marking a significant
transformation in the ethos of the Indian stock market towards greater accessibility, transparency, and
investor empowerment.

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Instruments Offered:

Zerodha offers a range of products and services tailored to meet the diverse needs of investors and traders
in the Indian stock market. Some of the key products offered by Zerodha include

• Equity Trading and Investments

• Derivatives Trading
• Currency Trading
• Commodities Trading
• Mutual Funds
• Bonds and Government Securities
• Initial Public Offerings (IPO)

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Company Profile:

Zerodha, established in 2010 by brothers Nithin Kamath and Nikhil Kamath, is a trailblazer in India's
financial services sector. As the country's leading discount broker, Zerodha has redefined the landscape of
stock trading and investing, offering innovative solutions and disrupting traditional brokerage models.

Mission:

Zerodha's mission is clear: to democratize finance and make investing accessible to all. The company is
committed to providing cutting-edge technology, transparent pricing, and educational resources to
empower traders and investors across India.

Core Values: Zerodha is driven by a set of core values that guide its operations

Innovation: Constantly pushing boundaries and embracing technology to enhance user experience.

Transparency: Providing clear, straightforward pricing and communication to clients.

Education: Empowering individuals with knowledge and tools to make informed investment decisions.
Customer First: Placing the needs and satisfaction of clients at the forefront of everything they do.

Zero Commission Trading: Zerodha operates on a flat fee-per-trade model, eliminating the traditional
percentage-based commission structure. Advanced Trading Platforms: The company offers robust trading
platforms like Kite, providing intuitive interfaces, advanced charting tools, and seamless execution
capabilities.

Educational Resources: Zerodha's educational initiatives, including Zerodha Varsity, empower traders
with comprehensive learning materials, tutorials, and market insights. Innovative Products: Zerodha
introduced innovative products like Coin (direct mutual fund platform) and Sensibull (options trading
platform), catering to diverse investor needs.
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Technological Prowess: Zerodha is synonymous with technological innovation in the Indian brokerage
industry: The company leverages cutting-edge technology to deliver fast, reliable, and secure trading
experiences. Continuous investment in research and development ensures Zerodha remains at the forefront
of technological advancements.

Market Impact: Zerodha's disruptive approach has reshaped India's brokerage landscape: The company
boasts the largest client base among all brokerage firms in India. Zerodha's user-friendly platforms and
transparent pricing have attracted a significant portion of India's retail investor population.

Relevance of study / Problem definition:

• Understanding the Impact of Zerodha's Disruptive Model on Indian Stock Market Dynamics.
• Analyzing Investor Behavior and Trading Patterns on Zerodha's Platform in the Indian Stock Market.
• Assessing Zerodha's Role in Shaping the Competitive Landscape of Indian Discount Brokerage.
• Exploring Regulatory Challenges and Opportunities in the Rise of Discount Brokerage: A Case Study
of Zerodha in India.
• Examining the Technological Innovations and User Experience Offered by Zerodha in the Indian Stock
Market Context.

Need of study:

• Analyzing Investor Behavior on Zerodha's Platform

• Implications for the Indian Stock Market
• Assessing Regulatory Challenges Posed by Zerodha and Discount Brokerage Models in India
• Evaluating Zerodha's Technological Innovations and Their Influence on the Indian Stock Market
• Managing Risks in Discount Brokerage: Lessons from Zerodha in the Indian Stock Market

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Objective:

1. To understand the behavior and trends of the Indian stock market with the help of the Zerodha trading
platform.

2. To identify investment opportunities that Zerodha provides as a discount broker.

3. To analyze the reliability and research tools of Zerodha.

4. To assess Zerodha’s trading platform, tools, and technology their features, and ease of use.

Limitation of the study:

• Limited data disclosure by Zerodha impedes comprehensive analysis, affecting accuracy and depth.
• Research demands substantial time, risking depth due to project deadlines.
• Rapid tech shifts require constant monitoring, impacting Zerodha's operations analysis.

Research Design:

• Mixed-Methods Approach: Integrating Quantitative Analysis with Qualitative Insights on Zerodha's

Market Impact.
• Survey-Based Research: Capturing Investor Perceptions and Experiences with Zerodha in the Indian
Stock Market.

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The hypothesis of the study:

Hypothesis 1:

H0: Zerodha's low-cost model does not boost retail participation, enhancing financial inclusion and wealth
creation.

H1: Zerodha's low-cost model boosts retail participation, enhancing financial inclusion and wealth
creation.

Hypothesis 2:

H0: Zerodha does not rely on high trading volumes, vulnerable to market fluctuations and competition.

H1: Zerodha relies on high trading volumes, vulnerable to market fluctuations and competition

Research Methodology:

Research is usually undertaken to extend the frontiers of knowledge regarding some specific area of
intellectual pursuit. Marketing research is the function, that links customers, customers, and public to the
marketing through information. Information is used to identify and define marketing opportunities and
problems.

Effective research involves five steps:

● Defining the problem and research

● Developing the research plan

● Collecting the information

● Analysing the information

● Presenting the findings

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Data source:

The research plan requires primary data, secondary data, or both.

Primary data:

Primary data can be collected through the following method, survey technique, or approach

This consists of the following:-

1. Questionnaire

2. Personal interview or field survey

3. Telephone survey

Secondary data:

Secondary data can be collected through the following method:-

1. Websites

2. Internal records

3. National Journal

4. Research papers, etc.

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Plan of work:

The duration required for each aspect of the project will be as follows:

• Introduction – 6 days
• Data collection – 8 days
• Interpretation and analysis - 16 days
• Writing and research project - 18 day

Proposed Chapterization Scheme:

Introduction Understanding the Indian Stock Market Landscape and the Rise of Discount
Brokers.

Company Profile: Exploring the Origins, Growth, and Operations of Zerodha in the Indian
Financial Sector.

Relevance of Study Examining the Significance of Investigating Zerodha's Impact on the Indian
Stock Market.

Need of Study Identifying Gaps and Justifying the Importance of Researching Zerodha in the
Context of Indian Financial Markets
Objectives of Study Defining Clear Goals and Outcomes for Analyzing Zerodha's Role and Influence.

Research Methodology Detailing the Approach, Data Collection Methods, and Analysis Techniques
Employed in the Study.

Work Plan Outlining the Timeline, Resources, and Milestones for Conducting the Research
on Zerodha.

Bibliography: Listing the Sources, References, and Literature Consulted for the Study of
Zerodha in the Indian Stock Market

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Conclusion:

The conclusion for the said research work “A Study of Discount Brokers in India's Stock Market
concerning ‘Zerodha’ will be drawn based on study and research done during the particular period and
based on findings and analysis.

Bibliography:

Website:

https://www.nseindia.com/

https://www.livemint.com/market

https://zerodha.com/

Gaurav J Wasnik Dr. Kamlesh Thote

Research Student Research Guide

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