In a recent post, Kamath highlighted the difference between where users are registered and where they are actually trading from. According to him, while many new account holders appear to be from smaller towns and cities based on KYC addresses, their real-time trading activity, as measured through IP addresses—tells a different story.
“The bulk of trading activity is still concentrated in India’s top 20 cities,” Kamath pointed out, explaining that most users don’t update their KYC address after moving to metros for work or education. Cities like Bengaluru and Pune continue to dominate in terms of active trading sessions, not just because of their strong tech presence, but also due to the large population of migrant professionals from smaller towns.
Kamath added that such discrepancies in data interpretation can lead to flawed conclusions about the deepening of financial market participation in rural or semi-urban India. While account openings may suggest growing financial inclusion, the actual trading behaviour still seems to be concentrated in urban India.
This is not the first time Kamath has cautioned against over-optimistic market narratives. Under his leadership, Zerodha has often taken a data-first approach in understanding retail investor trends.
Zerodha, India’s largest brokerage by active clients, has been central to the rise of DIY investors and traders in India, especially after the pandemic-led bull run of 2020–21.Kamath clarified that his observations are based on Zerodha’s customer data and may not reflect trends across the entire industry. Still, it’s a timely reminder that deeper insights often lie beyond the surface of headline numbers.
