Zerodha SEBI registration (INZ000031633)

Zerodha Broking Limited holds a stock broker certificate of registration bearing registration number INZ000031633, issued by the Securities and Exchange Board of India (SEBI) under the Securities and Exchange Board of India (Stock Brokers) Regulations, 1992. This registration authorises Zerodha to act as a stock broker across multiple recognised stock exchanges in India and is the foundational licence upon which all of the firm’s client-facing services legally rest.

Background and regulatory framework

The requirement for stock broker registration in India flows from section 12(1) of the Securities and Exchange Board of India Act, 1992 (the SEBI Act), which makes it unlawful for any person to carry on the business of a stock broker unless that person holds a certificate of registration granted by SEBI. The operative delegated legislation is the Securities and Exchange Board of India (Stock Brokers) Regulations, 1992, which were first notified in September 1992 and have since been amended several times to accommodate electronic trading, algorithmic order routing, and risk-based supervision frameworks.

SEBI grants registration on a category basis. A broker registered in the “cash” category may execute trades only in equity shares and other securities that settle on a delivery-versus-payment basis. Brokers registered in the “futures and options” (F&O) category may additionally execute derivatives contracts. Brokers registered in the “currency derivatives” and “commodity derivatives” categories may access the respective segments of recognised exchanges. Zerodha’s certificate INZ000031633 covers all segments in which the firm is active, consistent with its membership of multiple exchanges.

Governing statutes and circulars

• The SEBI Act, 1992, section 12 (registration requirement)
• The SEBI (Stock Brokers) Regulations, 1992 (as amended up to 2023)
• SEBI Master Circular for Stock Brokers (most recently consolidated in 2023)
• SEBI Circular on Risk Based Supervision of Stock Brokers, 2021
• SEBI Circular on Margin Framework (SEBI/HO/MIRSD/DOP/CIR/P/2020/236)

Zerodha’s registration history

Zerodha Broking Limited was incorporated in August 2010 and commenced trading operations on National Stock Exchange (NSE) in the same year. The firm applied for and received its initial SEBI stock broker certificate shortly after incorporation. Over the following years, as Zerodha expanded into the BSE equity segment, the currency derivatives segment on NSE, and the commodity derivatives segment on Multi Commodity Exchange (MCX), its registration was progressively upgraded to cover each additional segment.

By 2015 Zerodha had grown to become one of the largest retail brokers in India by active client count, a position it has maintained and consolidated since. Its certificate INZ000031633 reflects the current unified registration number format that SEBI adopted to replace earlier format codes, under which brokers received separate codes per exchange.

According to public SEBI records as of mid-2026, Zerodha holds a valid and current certificate without any suspension or cancellation recorded on the SEBI intermediary portal.

Scope of the certificate

A SEBI stock broker certificate does not, by itself, authorise trading on any particular exchange. It authorises the holder to apply for membership of recognised stock exchanges and to act as an agent of clients in placing orders on those exchanges. Zerodha’s actual trading authorisation on each exchange flows from its membership agreements with those exchanges (see related articles on Zerodha NSE membership, Zerodha BSE membership, Zerodha MCX membership, and Zerodha MSEI membership).

The certificate covers the following activities:

• Equity cash segment: buying and selling of listed equity shares and other securities in the regular lot and odd lot markets.
• Equity futures and options: trading in index and stock futures and options contracts on recognised stock exchanges.
• Currency derivatives: trading in currency futures and options (USD/INR, EUR/INR, GBP/INR, JPY/INR pairs) on NSE and BSE.
• Commodity derivatives: trading in commodity futures and options on MCX after the SEBI-FMC merger in 2015.
• Interest rate derivatives: trading in interest rate futures on NSE.

Zerodha also holds a separate depository participant (DP) registration under CDSL (see Zerodha CDSL DP code), which is distinct from but complementary to the stock broker certificate.

Regulatory obligations arising from registration

Holding a SEBI stock broker certificate entails a comprehensive set of ongoing compliance obligations. These obligations apply to Zerodha irrespective of whether it operates as a discount broker (charging flat fees per order) or as a full-service broker. The principal obligations are summarised below.

Know Your Customer (KYC) obligations

SEBI and the exchange-mandated KYC requirements oblige Zerodha to verify the identity and address of every client before opening a trading account. For resident individual clients this involves PAN verification (via ITD API), Aadhaar-based e-KYC (with UIDAI consent), and bank account verification via penny drop or IFSC lookup. For non-individual clients (companies, HUFs, partnership firms) the process involves additional documentation including board resolutions, certificate of incorporation, and beneficial ownership declarations.

Zerodha uses SEBI-registered KYC Registration Agencies (KRAs) to store and share KYC records with the broader market infrastructure, avoiding duplication for clients who already have KYC records with another SEBI-regulated intermediary.

Client fund segregation

Under SEBI’s Circular on Client Fund Segregation (SEBI/HO/MIRSD/DOP/CIR/P/2020/172 and subsequent amendments), Zerodha is required to maintain clients’ funds in a separate “client bank account” distinct from its own proprietary funds. Transfers from the client bank account to the exchange settlement accounts must occur on the day specified in the settlement calendar, and surplus funds must be returned to clients within one working day of settlement.

SEBI’s 2022 circular on pledging and re-pledging of client securities introduced an additional layer of protection whereby client securities deposited as margin can only be used with the client’s explicit consent, using a SEBI-prescribed pledge mechanism routed through the depository.

Net worth and capital adequacy

Stock brokers must maintain a minimum net worth as prescribed by SEBI and the respective exchanges. As of 2023 SEBI requires brokers dealing in all segments (cash, F&O, currency, and commodity) to maintain a consolidated net worth of at least Rs 5 crore. Exchange-specific additional requirements apply on top of this floor. Zerodha, given its scale and classification as a Qualified Stock Broker (QSB), is subject to enhanced supervisory requirements including quarterly financial reporting to SEBI.

Reporting and audit obligations

Registered stock brokers must submit:

• Half-yearly audits: a certificate from a chartered accountant confirming that client funds are properly maintained and that margins reported to the exchange match the amounts actually collected.
• Annual compliance report: a self-certification filed with SEBI covering all regulatory requirements.
• Annual report to clients: a statement of accounts, including details of securities held in the client’s demat account and fund balances.
• Internal audit: quarterly internal audits of trading operations, KYC records, and margin practices, with the audit report submitted to the relevant exchange.

Maintenance of records

SEBI’s record-keeping requirements under the (Stock Brokers) Regulations mandate that Zerodha maintain client ledgers, contract notes, and order logs for a minimum of five years. Contract notes must be issued to clients within 24 hours of trade execution, either by email or through a secure client portal. Zerodha fulfils this obligation via its Kite and Console platforms.

Advertisement and disclosure standards

Zerodha may not make any false or misleading statements about its services, returns, or regulatory status. All promotional material must include the SEBI registration number (INZ000031633) and the firm’s name as registered with SEBI. The requirement to prominently display the registration number extends to the firm’s website, client-facing applications, and contract notes.

SEBI’s inspection and disciplinary powers

Registration under the (Stock Brokers) Regulations subjects Zerodha to SEBI’s full supervisory and enforcement toolkit. SEBI may:

• Inspect the books of account and records of Zerodha at any time.
• Issue show-cause notices for alleged regulatory violations.
• Appoint an adjudicating officer to determine whether a penalty should be imposed under chapter VIA of the SEBI Act.
• Suspend or cancel the certificate of registration in cases of serious or repeated violations.
• Issue interim orders, including directions to freeze client accounts in the broker’s back-office system, in cases of prima facie fraud or misappropriation.

Zerodha has over its operating history faced several routine adjudication proceedings, the outcomes of which are matters of public record on the SEBI website. A consolidated overview of historical regulatory actions is provided in the article on Zerodha penalties and SEBI orders (historical).

Client-level implications

For a client opening a trading account with Zerodha, the existence and validity of SEBI certificate INZ000031633 has several practical implications:

1. Legal recourse: Trades executed through Zerodha are backed by the regulatory structure of SEBI and the exchanges. In the event of a dispute, clients may access the SEBI SCORES grievance platform and, since 2023, the SEBI SMART ODR online dispute resolution mechanism.
2. Investor protection fund coverage: Exchange membership (a prerequisite for which is SEBI registration) entitles clients to coverage under the respective exchange’s Investor Protection Fund (IPF) in the event that the broker defaults and cannot meet its settlement obligations.
3. Audit trail: All orders placed through Zerodha are recorded in exchange audit trails, providing clients with an independent record maintained by the exchange in addition to Zerodha’s own systems.
4. Regulatory status verification: Clients can independently verify Zerodha’s registration status at any time by searching for “INZ000031633” or “Zerodha Broking” on the SEBI intermediary portal at sebi.gov.in.

Verification of registration status

SEBI maintains a publicly searchable intermediary portal where any retail investor can verify the current status of a registered stock broker. The portal is accessible under the “Intermediaries/Market Infrastructure Institutions” section of the SEBI website. A search for Zerodha Broking Limited or for registration number INZ000031633 returns the current registration details, the categories of registration, the validity date of the certificate, and any enforcement actions noted in the public record.

Clients are encouraged by SEBI to verify registration status before entrusting funds to any broker. The SEBI Act provides criminal penalties for unregistered persons who carry on the business of a stock broker.

Related regulatory framework for Zerodha

Zerodha’s SEBI registration is the legal apex of a broader regulatory structure that includes:

• Zerodha CDSL DP code (IN-DP-431-2019), registration as a depository participant
• Zerodha NSE membership, membership of the National Stock Exchange
• Zerodha BSE membership, membership of the Bombay Stock Exchange
• Zerodha MCX membership, membership of the Multi Commodity Exchange
• Zerodha MSEI membership, membership of the Metropolitan Stock Exchange of India
• Zerodha clearing arrangement, clearing and settlement infrastructure
• Zerodha investor charter, SEBI-mandated client rights document
• Zerodha grievance redressal mechanism, framework for handling client complaints
• Zerodha as a Qualified Stock Broker (QSB), enhanced supervisory designation

References

1. Securities and Exchange Board of India Act, 1992, section 12, registration of intermediaries.
2. SEBI (Stock Brokers and Sub-Brokers) Regulations, 1992, as amended, operational framework for stock broker registration.
3. SEBI Master Circular for Stock Brokers, 2023 (SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2023/67), consolidated compliance requirements.
4. SEBI Circular on Client Fund Segregation and Margin Obligations (2020–2022 series).
5. SEBI Circular on Pledging and Re-Pledging of Client Securities, 2020.
6. SEBI Intermediary Portal, Zerodha Broking Limited registration entry (sebi.gov.in, accessed mid-2026).
7. SEBI Annual Report 2022–23, Chapter on Market Intermediaries.
8. NSE Broker Registration Requirements, NSE Exchange Compliance Handbook (2023 edition).