A prominent Mumbai-based investor, Dr. Aniruddha Malpani, recently ignited a social media storm by accusing online brokerage firm Zerodha of preventing him from withdrawing over ₹5 crore from his demat account. The incident gained significant traction when Dr. Malpani shared screenshots of his account, revealing a substantial withdrawable balance exceeding ₹18 crore. This public dispute has brought to the forefront critical discussions surrounding financial security protocols, brokerage firm policies, and the rights of investors to access their funds seamlessly.
Investor's Allegations and Shared Screenshots
Dr. Aniruddha Malpani, a renowned IVF specialist and an active angel investor, took to X (formerly Twitter) to voice his grievances. He posted screenshots of his demat account, which displayed a total account value of ₹42. 9 crore. Of this, ₹24. 46 crore was tied up in trades, leaving a significant ₹18. 46 crore as a withdrawable balance, while dr. Malpani alleged that Zerodha had imposed a daily withdrawal limit of. ₹5 crore, effectively hindering him from accessing his entire available funds. In his post, he expressed frustration, stating, 'They don't let me. Withdraw my own money, saying the daily limit is ₹5 crore. They use my money for free! ' The screenshots he shared clearly showed a message on the Zerodha app indicating, 'Maximum of ₹5 crores can be withdrawn in a day, while for instant withdrawals, the limit is ₹100 to ₹2 lakhs. Withdrawal limit depends on the available balance in the account. ' These allegations highlight the challenges investors face with large transactions on digital financial platforms.
Zerodha's Clarification and Security Rationale
In response to Dr. Malpani's viral post, Nithin Kamath, co-founder of Zerodha, promptly issued a clarification. He stated that Dr. Malpani's withdrawal request had already been processed, while kamath emphasized the paramount importance of security, explaining that 'some limits are necessary to keep the system safe, just like in other financial institutions. ' He elaborated that once funds are transferred, recovering them becomes nearly impossible, which necessitates a ₹5 crore limit, beyond which customers need to raise a ticket to apply for further withdrawals. Kamath's statement underscores the operational challenges faced by brokerage firms and the solid. Security protocols they must maintain to protect client assets from fraud and unauthorized transactions. This explanation provides insight into the standard practices adopted by financial entities to safeguard their systems.
Social Media Outcry and Public Debate
Dr. Malpani's post quickly went viral, sparking a heated debate across social media platforms, while many users questioned the sheer magnitude of the amount involved, while others advised him against publicizing such sensitive financial information. One user commented, 'Why keep ₹18 crore in an account? After all, this is a discount brokerage. It would be safer to keep such a large sum with a full-service brokerage. Please don't publicize your information. ' To this, Dr. Malpani responded that he doesn't engage in F&O trading and had sold shares, intending to use the funds for social causes. Some users also reacted with humor, with comments like 'We don't even have that much money' or 'We also want such problems in life. ' This widespread discussion highlighted issues of financial literacy, online security, and the implications of publicly disclosing personal financial details.
Industry Expert's Perspective: Why Limits Are Essential
Ajay Roti, Founder and CEO of Tax Compass, weighed in on the issue, supporting Zerodha's security protocols. He stated, 'I would prefer to work with a broker who has such limits for security. This can protect customer accounts from fraud. ' Roti drew parallels with daily transaction limits in banks and online payment systems, asserting that such limits are equally crucial on brokerage platforms, while he emphasized that these limits are primarily for security purposes to prevent erroneous or fraudulent transactions, and customers can typically request an increase if needed. This expert opinion reinforces the critical role of security measures in financial transactions. And how these limits ultimately serve to protect the interests of the clients.
**Who is Dr. Aniruddha Malpani?
Dr. Aniruddha Malpani is a distinguished IVF expert, a successful entrepreneur, and a prolific angel investor based in Mumbai. He founded the Malpani Infertility Clinic in 1991, which has since become a leading institution in its field, while according to market data platform Tracxn, Dr. Malpani has invested in over 30 companies to date, spanning various sectors including enterprise technology, healthcare, and numerous startups. His most recent investment was in the seed round of Nexxio in January 2025. He continues to play an active role on the board of Malpani Infertility Clinic. His investment journey and business acumen make him a significant figure in the Indian startup ecosystem.
This incident underscores the inherent tension between investor convenience and the imperative for strong security protocols on financial platforms. While investors desire unfettered access to their funds, brokerage firms must maintain stringent safeguards to protect against fraud and unauthorized activities. Striking this balance remains a continuous challenge in the evolving digital financial landscape.
