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- Zerodha Equity Commodity Trading Activate Process Explained | Nithin Kamath
Mumbai26 minutes ago
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Now there is no need to create a separate account for commodity trade and add money to it in the trading platform Zerodha. Investors can buy commodities using their existing equity account amounts. Company 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 Pvt Ltd is the commodity member.
Kamath asking to be shifted to Zerodha Broking
Nitin 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 the 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 must have seen a notice in the newspaper.
Process to activate commodity segment:
- Open Zerodha’s Kite App
- Tap on User ID and go to Profile
- Select Segment and then ‘Commodity’ and tap Continue
- Provide information about gross income, trading experience and commodity trades
- Upload Income Proof or Select Holding Statement
- Tap on Undertaking and select mobile or email for OTP
- Tap on Continue, verify by entering OTP
- After verification, the commodity segment will be activated 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. Therefore, customers had to add different amounts in each account. They were not able to use the money in their equity account for commodities.
Similarly, the money in the commodity account could not be used to buy shares of companies. However, now Zerodha has introduced a single account facility under Zerodha Broking Limited in the equity segment where funds can be used for both equities and commodities.
New account will be opened under Zerodha Broking Limited
If you have not previously opened a commodity account with Zerodha and now activate the commodity segment, a new account will be opened under Zerodha Broking Limited.
Whereas, the account of customers having existing commodity account will be deactivated on activating the commodity segment from the console and a new commodity account will be opened under Zerodha Broking Limited. Existing customers must ensure that all existing MCX positions are closed before this process is processed.
