Home / Business and Economy / Investor Accuses Zerodha of "Scam" Over $18M Withdrawal Limit
Investor Accuses Zerodha of "Scam" Over $18M Withdrawal Limit
4 Nov
Summary
- Investor Malpani had over $18M withdrawable balance, but Zerodha limited to $5M per day
- Zerodha says limits prevent systemic risks, not a "scam"
- Experts defend Zerodha's policy as standard practice in financial services
On November 3rd, 2025, Mumbai-based investor and IVF specialist Dr. Aniruddha Malpani alleged that online brokerage firm Zerodha had blocked his attempt to withdraw funds from his demat account, despite having a withdrawable balance of over $18.5 million. Malpani claimed this was a "scam" by Zerodha, as their platform limited withdrawals to a maximum of $5 million per day.
Zerodha co-founder Nithin Kamath later clarified that Malpani's payout requests had been processed, and the $5 million limit was part of standard operational checks to prevent systemic risks. Kamath explained that numerous potential issues can arise during large withdrawal processes, and once funds are paid out, there is no way for the company to recover them.
Ajay Rotti, Founder and CEO of Tax Compaas, defended Zerodha's policy, stating that similar limits exist across financial systems, including banks and UPI transfers, to ensure security during large withdrawals. Rotti argued that people need to be aware of these limits and plan their transactions accordingly, rather than "crying scam" on social media.
Zerodha permits withdrawals of up to $5 million per day, with instant withdrawals limited to $200,000 and available between 9 am and 4 pm. These limits apply based on the available balance in the user's trading account.
