India’s capital market infra, regulations best in the world, says Zerodha’s Nithin Kamath

While wondering how crypto brokers and exchanges expose customers to unlimited risk, Zerodha co-founder Nithin Kamath in a tweet said that India’s capital market infrastructure and regulations are the best in the world.

“Our capital market infrastructure & regulations don’t get enough credit for being among the best in the world. It is crazy & scary what is happening today in the crypto world. Crypto Brokers & exchanges can act as banks in most markets, exposing customers to unlimited risk,” the billionaire stockbroker said.

The crypto market has come under acute pressure after the major cryptocurrency exchange FTX’s deal was called off with rival Binance, who withdrew the offer after due diligence on the proposed acquisition.

Pointing out that in India, all securities are held by the customer at the depository, he said all unused funds are sent back monthly or quarterly and one client’s funds can’t be used to fund another.

“In most markets, brokers can hold customer securities & funds indefinitely & use them any way they want,” Kamath said, adding that like we celebrate our payment systems for being the best, we also need to do the same for our market infrastructure, especially SEBI, for whatever they have done to protect retail investor interests by continuously reducing risks and marking our markets safer.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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