Online brokerage firm Zerodha has no plans to go public, as it does not require additional funds and wants to avoid the heightened scrutiny of being a listed company, co-founder and CEO Nithin Kamath said on Wednesday.

"We are already in a highly regulated industry, and we don’t want to subject ourselves to even more," Kamath said during an interview with CNBC-Awaaz.

He also highlighted that Zerodha provides its employees with exit opportunities through annual ESOP buyback programs. Additionally, the company does not see the equity market offering significantly higher valuation multiples. "Possibly, 1-2 times the valuation, not five times," Kamath remarked when asked whether higher multiples could prompt a listing decision.

Specific Philosophy

Kamath emphasised that Zerodha follows a specific philosophy, and adhering to capital market disclosure requirements, such as quarterly targets, would be challenging. "If regulators come and say we need to list, then we will have to," he added.

Reflecting on market trends, Kamath noted that the past 10-15 years of growth have been "fast-forwarded," especially since COVID-19, as more individuals have turned to capital markets for investment. "The last 4-5 years have seen the biggest run in terms of participation," he said.

Since October, activity in the options market has declined significantly, said Nithin Kamath. "One has to assume that fewer trades will mean lesser losses as well," he noted.

In the futures segment, half of the clients are making profits while the other half are incurring losses, Kamath explained. However, options trading has seen a notable drop in both participation and overall market activity. "Options are looking at a quick way of making money, and that’s not really possible in the market," he added, stressing why so many investors struggle in this segment.

Kamath cautioned against reading too much into the past six months, stating that the lower trading activity has been driven by bearish sentiment, particularly in the cash market. "We may be able to spot the trend in the F&O segment based on recent changes over the next year," he said.

"The retail activity is the mirror image of the market performance. As the last 4-5 years have been a bull run, the market activity too has picked up," Kamath observed. However, he described the current market as experiencing a "bear market of sorts," marking the first such phase in recent years.

Looking ahead, Kamath believes market activity will rebound if the recent recovery continues. "Now that we have had a bounce back, if this continues, then definitely the activity will be back," he said.