Overview

• Zerodha's internal study highlights discrepancies between KYC address data and IP-based trading locations, revealing misclassification of trader geography.
• The analysis shows that most trading activity originates from India's top 20 cities, despite KYC data suggesting growth in Tier 2 and Tier 3 towns.
• Many users retain outdated KYC addresses after relocating to urban hubs like Bengaluru and Pune for work, skewing demographic assessments.
• Nithin Kamath advises caution when using KYC-based metrics for market analysis, emphasizing the need for nuanced interpretation of data.
• Kamath clarifies that these findings are based solely on Zerodha's customer base and may not reflect broader industry trends.