Investor Accuses Zerodha of 'Scam' Over Fund Withdrawal Limits; Brokerage Responds

Mumbai-based investor and IVF specialist Dr. Aniruddha Malpani has accused leading stock brokerage Zerodha of operating a "scam." Dr. Malpani stated on Twitter that Zerodha blocked his access to withdraw his own money, claiming a daily withdrawal limit of Rs 5 crore. He asserted that Zerodha was using his funds without charge, calling the situation "unfair." He posted a screenshot showing an available cash balance of approximately Rs 42.9 crore.

In response, Zerodha co-founder Nithin Kamath explained that Dr. Malpani's payout requests were processed. He clarified that Zerodha, like other financial services firms, implements certain checks for system integrity, especially for large withdrawals. Kamath noted that amounts exceeding Rs 5 crore require customers to raise a ticket, as recovered funds are difficult once processed. Dr. Malpani is a well-known investor with a portfolio estimated to be worth over Rs 300 crore and founded Malpani Ventures, an early-stage startup investor.

Impact: This news could impact investor confidence in brokerage platforms' fund withdrawal processes, especially for large amounts. It highlights potential friction points between large investors and financial intermediaries, potentially affecting market sentiment towards Zerodha and similar platforms. Rating: 4/10.

Difficult Terms: * **Stock brokerage**: A firm or individual that charges a commission for buying and selling securities, like stocks, on behalf of an investor. * **Scam**: A dishonest scheme; a fraud. * **Daily withdrawal limit**: The maximum amount of money a customer can withdraw from their account within a 24-hour period. * **Frugal innovation**: Developing products or services that are simpler, more affordable, and sustainable, often in resource-constrained environments. * **Assisted reproduction**: Medical techniques used to help people achieve pregnancy, such as In Vitro Fertilization (IVF). * **IVF (In Vitro Fertilization)**: A medical procedure where an egg is fertilized by sperm outside the body, in a laboratory dish.