New Delhi: Zerodha users can now seamlessly trade commodities using their existing equity account balance, eliminating the need for maintaining a separate commodity account. Nithin Kamath, founder and CEO of Zerodha, addressed this long-standing “legacy issue” in a recent announcement on social media platform X.
Previously, Zerodha managed equity accounts under Zerodha Broking Ltd, and commodity accounts under Zerodha Commodities Ltd, requiring clients to manage funds separately for each segment. This meant users couldn’t utilise equity funds for commodity trading and vice versa.
Use funds from equity segment
With the implementation of a unified ledger system, clients can now use funds from their equity segment under Zerodha Broking Ltd to trade both equities and commodities seamlessly. Kamath highlighted that this change also allows clients who were previously trading commodities to consolidate under Zerodha Broking Ltd without any disruption.
Now, you can trade commodities using the same equity account balance without maintaining a separate commodity account. This was a legacy issue that took us a long time to address.
Zerodha Broking is our primary membership, and Zerodha Commodities Pvt Ltd is the commodity…
— Nithin Kamath (@Nithin0dha) July 17, 2024
As part of this integration process, Zerodha is surrendering its license for Zerodha Commodities Pvt Ltd. on exchanges where it was inactive, such as the NSE (National Stock Exchange). Clients can now trade NSE-listed commodities using their unified equity account.
Zerodha: How to activate the commodity segment?
For existing clients looking to activate the commodity segment:
If you haven’t opened a commodity account with Zerodha, activating the commodity segment will initiate the opening of a new commodity account under Zerodha Broking Ltd.
Clients with an existing commodity account need to activate the commodity segment through the Console. This action will deactivate their current commodity account under Zerodha Commodities Ltd., and a new one will be opened under Zerodha Broking Ltd. It’s important for these clients to ensure all existing MCX positions are closed beforehand.
This strategic move by Zerodha aims to simplify trading processes for its users, enhancing convenience and operational efficiency across both equity and commodity segments.
Stories
Click to read in detail
New Tax Regime
How can I switch to new tax regime?
MF & Tax
Are mutual funds eligible for deduction
HRA & tax
No HRA component in salary: How to save tax
ITR due date
Can Income Tax Return be filed after due date?
Zerodha is surrendering its license for Zerodha Commodities Pvt Ltd. on exchanges where it was inactive, such as the NSE (National Stock Exchange). This strategic move by Zerodha aims to simplify trading processes for its users. Markets Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
