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- Zerodha Equity Commodity Trading Activate Process Explained | Nithin Kamath
Mumbai7 minutes ago
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There is no need to create a separate account and add money to it for commodity trading in trading platform Zerodha. Investors can buy commodities using the amount of their existing equity account. The company’s founder and CEO Nitin Kamath gave information about this on social media platform X.
He wrote- Now you can trade commodities using the same equity account balance without creating a separate commodity account. This was a legacy issue that took us a long time to resolve. Zerodha Broking is our primary membership and Zerodha Commodities Private Limited is a commodity member.
Kamath is asking to shift to Zerodha Broking
Nithin Kamath said- We have started allowing customers to shift to Zerodha Broking Limited even if they are trading commodities. As part of this process, we are also surrendering the license of Zerodha Commodities Private Limited on those exchanges where we are not active i.e. NSE.
You can trade in NSE commodities using the same equity account. Since we are surrendering the commodity license under Zerodha Commodities Private Limited, you might have seen a notice in the newspaper.
Process to activate commodity segment:
- Open Zerodha Kite App
- Tap on the user ID and go to profile
- Select the segment and then ‘Commodity’ and tap on Continue
- Provide details about gross income, trading experience and commodity trade
- Upload income proof or choose holding statement
- Tap on Undertaking and select Mobile or Email for OTP
- Tap on Continue, enter OTP and verify
- After verification, the commodity segment will become active within 72 hours.
Earlier Zerodha used to open separate accounts for equity and commodity
Earlier equity accounts were opened under Zerodha Broking Limited, while commodity accounts were managed under Zerodha Commodities. Hence, customers had to add separate amounts to each account. They were not able to use their equity account money for commodities.
Similarly, the money from the commodity account could not be used to buy shares of companies. However, now Zerodha has started a single account facility under Zerodha Broking Limited and the funds in the equity segment can be used for both equity and commodity.
New account will be opened under Zerodha Broking Limited
If you have not opened a commodity account with Zerodha earlier and now activate the commodity segment then a new account will be opened under Zerodha Broking Limited.
Whereas, for customers with existing commodity accounts, their account will be deactivated upon activating the commodity segment from the console and a new commodity account will be opened under Zerodha Broking Ltd. Existing customers must ensure that all existing MCX positions are closed before doing this process.
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