- Indian stock exchanges closed for Mumbai municipal elections, criticised by Zerodha CEO Kamath
- Kamath called the holiday poor planning due to Indian market's global linkages
- He quoted Charlie Munger's famous line: “Show me the incentive, and I will show you the outcome.”
Indian stock exchanges remained closed on Thursday for Mumbai's municipal elections, a move that Zerodha CEO Nithin Kamath criticised as “poor planning” given the markets' international linkages.
Kamath noted that the holiday persists because “no one who matters has any incentive to oppose it,” quoting Charlie Munger's famous line: “Show me the incentive, and I will show you the outcome.”
He argued that such decisions highlight how far India must go before global investors take its markets seriously.
Recently, Kamath was also in the spotlight when he took to social media platform X to shed light on the "hard ceiling" on open interest that Indian brokerages are beholden to according to norms and regulations.
Open interest is described as the total number of active contracts not closed, exercised or expired with regards to Futures and Options trading,
The Securities And Exchange Board of India has set a 15% cap at the broker level with regards to OIs.
"No single broker can hold more than 15% of the total market OI. This restriction exists to mitigate the risk of concentration from any single broker becoming too large," Kamath said.
Notably, a significant section of Indian traders place bets in F&O, despite the derivatives trade being projected as risky by the stock market. Around 91% of individual traders incurred losses in F&O trading in fiscal 2025, as per a SEBI report.
