New Delhi, June 20 -- Nithin Kamath, the co-founder and chief executive officer (CEO) of discount broking firm Zerodha, recently highlighted the risks of running a broking business, which often appears attractive on the surface - fast-growing revenues, rising trader numbers, and increasing volumes.

The 45-year-old entrepreneur warned the broking business faces massive concentration risk-where a single change can wipe out a big chunk of revenue. "I wonder why the brokerage business looks so sexy from the outside," he quipped.

In a social media post on X on Friday, June 20, Nithin Kamath shared an anecdote wherein he said that back in 2008, a private equity veteran decided against investing in a broking firm due to a glaring issue: revenu...