How to Activate F&O in Zerodha

Many traders begin their journey on Zerodha with equity delivery or intraday trading. As they learn more about the markets, the need to trade derivatives, Futures and Options (F&O) gradually increases. However, Zerodha does not automatically enable F&O access when you open a basic equity account. To trade index futures, stock options, currency derivatives, or commodity futures, you must complete a simple but mandatory segment activation process.

Activating F&O in Zerodha means enabling the Equity Derivatives, Currency Derivatives, or Commodity Derivatives segments on your trading account. This is a regulatory requirement defined by SEBI and the exchanges. Every broker, including Zerodha, must verify your income proof, assess your trading eligibility, and confirm your declarations before granting F&O access.

In this comprehensive guide, you’ll learn how to activate F&O in Zerodha, step-by-step, using both the Kite app and Zerodha Console. We’ll discuss eligibility criteria, required documents, timelines, common issues, troubleshooting, and answers to the most frequently asked questions.

By the end, you’ll know exactly what to submit, how long the activation takes, how to check your approval status, and what to do if your request gets rejected.

Table of Contents

1. Eligibility to Activate F&O in Zerodha
2. Documents Required for F&O Activation
3. How to Activate F&O in Zerodha (Step-by-Step)
4. What Happens After You Submit the Request
5. Common Issues & Troubleshooting
6. Frequently Asked Questions (FAQs)
7. Conclusion

Who Can Activate F&O in Zerodha (Eligibility Criteria)

Before you begin the activation process, it’s important to understand who is eligible to enable derivatives trading. Zerodha follows rules defined by SEBI and the exchanges, which specify the types of accounts and individuals who can apply to activate F&O.

1. Resident Individual Clients

Any Indian resident individual with:

• A Zerodha trading and demat account
• Aadhaar linked to a mobile number (for e-signing)
• Valid income proof
• Correct KYC details

Zerodha requires clients to show a certain level of financial stability because derivatives involve leverage and higher risk compared to equity delivery trades.

2. NRO (Non-PIS) Account Holders

NRO (Non-PIS) clients can also activate F&O online. However, NRE-PIS accounts cannot trade in derivatives, as per RBI regulations. Only NRO non-PIS trading accounts are eligible.

3. Non-Individual Clients (Corporate, HUF, LLP, Trust)

These clients cannot enable F&O online.

They must complete the activation using the offline method, which includes:

• Segment activation forms
• Authorised signatory documents
• Board resolutions (for corporates)
• Income proof for the entity

Corporate and non-individual accounts follow a stricter compliance structure.

4. Minors Cannot Enable F&O

A trading account for a minor is legally restricted to delivery-based equity. Minors:

• Cannot trade derivatives
• Cannot use leverage
• Cannot activate any F&O segment

This restriction is set by SEBI, not just Zerodha.

5. Additional Regulatory Checks

While applying for F&O activation, Zerodha may also verify:

• Annual income range
• Occupation category
• Tax residency details
• Risk disclosure acknowledgements

These checks ensure compliance and help the broker maintain accurate client risk profiles.

Also, read our detailed Zerodha review with a full analysis of charges, features, and more to get the complete details.

Documents & Information Required to Enable F&O

As mentioned previously, the most important requirement for enabling F&O is income proof, which SEBI mandates for all brokers. Zerodha accepts multiple types of documents, so even beginners can apply if they have the correct form of proof.

Below are all acceptable document types and guidelines.

1. Income Proof Options Accepted by Zerodha

1. Bank statement
   A recent bank statement of the last 6 months showing income credits or regular transactions.
   Your name, account number, and bank details must be clearly visible.
   Statements without identifiable details or unclear scans may be rejected.
    
2. Salary slip
   A recent salary slip (usually from the past 1–3 months).
   Should clearly display the employer name, employee name, and salary structure.
   Blurred or partial salary slips are not accepted.
    
3. Income Tax Return (ITR)
   You can upload your ITR acknowledgement (ITR-V).
   It must be from the previous 2 financial years.
   Ensure that the document shows total income clearly.
    
4. Form 16
   Form 16 from the latest financial year is acceptable.
   It should show the taxable income details issued by your employer.
   Make sure the PDF is complete and readable.
    
5. Net Worth Certificate
   A Net Worth Certificate issued by a Chartered Accountant (CA).
   Must be on the CA’s official letterhead, with stamp, signature, and date.
   Should clearly mention the computed net worth.
    
6. Demat Holdings Statement
   A recent Demat Holdings Statement from your depository (NSDL/CDSL).
   Zerodha accepts this if holdings show a reasonable value (for many users, even ₹10,000–₹50,000 may suffice depending on the profile).
   The statement must clearly show security names and valuation.
    
7. Fixed Deposit (FD) Receipt
   An FD receipt from a recognised bank, showing your name and deposit value.
   The amount must be adequate to justify financial capacity for derivatives trading.
   Image or PDF must be clear and include issue details.

Zerodha accepts documents in PDF or image format (JPEG/PNG). Files should be clear, not password-protected, and below standard upload limits (2–5 MB).

2. Selecting an Income Range

During activation, you must select your annual income range. This helps the broker assess risk suitability and is required for compliance purposes.

Income brackets generally follow SEBI guidelines, such as:

• Below ₹1 lakh
• ₹1–5 lakh
• ₹5–10 lakh
• Above ₹10 lakh

Choose accurately, as discrepancies may cause rejection.

3. Commodity F&O Classification

If you choose to activate Commodity F&O (MCX), Zerodha requires you to classify yourself as:

• Farmer
• Value Chain Participant (VCP)
• Other
• Processor
• Exporter / Importer

This is required by commodity market regulations.

4. Currency F&O – Additional Declaration

For certain currency derivative segments, Zerodha may require:

• An RBI Declaration Form
• e-Sign verification

This is mandatory for regulatory compliance with currency trading restrictions.

5. Special Case: Sikkim Residents

If your registered address is in Sikkim, Commodity F&O requires:

• Domicile certificate
• Additional identity verification

This rule comes from exchange guidelines for commodity trading.

Want to go beyond order types and understand whether your funds and trades are truly secure? Read the complete breakdown in Is Zerodha safe.

How to Activate F&O in Zerodha: App and Console Methods

You can activate F&O using either the Kite mobile app or the Zerodha Console website. Both methods are simple and take only a few minutes.

4.1 How to enable F&O via Kite App

Here is the exact step-by-step process:

1. Open the Kite app
2. Tap your User ID on the top-left
3. Go to Profile
4. Select Segments
5. Tap Activate segment
6. Choose Equity Derivatives / Currency / Commodity
7. Click Continue
8. Upload your income proof (PDF or image)
9. Accept the Terms & Conditions
10. Complete OTP verification via email or SMS
11. Submit the activation request

Once submitted, your request will show as “Under Review”.

4.2 How to enable F&O via Zerodha Console (Web)

The Console method is preferred if you are uploading large files or want more control over the process.

Steps:

1. Visit console.zerodha.com
2. Log in using your Kite credentials
3. Go to Account
4. Select Segment Activation
5. Choose F&O segments you want to enable
6. Click Continue
7. Upload income proof
8. Accept all terms
9. Complete OTP or Aadhaar e-Sign, depending on the segment
10. Submit

This method also supports commodity and currency segment activation with additional declarations.

What Happens After Submission (Processing & Activation Timelines)

Once you’ve submitted all documents and completed verification, Zerodha begins processing your request.

1. Activation Timeline

Zerodha typically takes: Up to 72 working hours for F&O activation, in many cases, approval is completed within 24–48 hours. Delays may occur during exchange holidays, incomplete documentation, or high application volumes.

2. How You Receive Confirmation

Zerodha sends updates through: Email, SMS, and Console notifications

Your F&O segment status will update automatically once approved.

3. How to Check If Your F&O Segment Is Active

You can manually verify activation:

• On Kite App:
  Profile → Segments → Active Segments → Check if “Equity Derivatives” is enabled
• On Console:
  Account → Segments → Look for “Activated” status

4. If Activation Fails

Common reasons for rejection include:

• Blurry or unreadable document
• Income proof too old (e.g., ITR older than 2 years)
• Bank statement missing income credit entries
• Demat holding value below threshold
• Wrong file format
• Name mismatch between PAN and supporting documents

You will receive the exact rejection reason, and you can re-upload corrected documents.

Find the lowest brokerage charges for F&O and keep more of your hard-earned cash in your pocket.

Common Zerodha Activation Issues and How to Fix Them

Even though the activation steps are simple, many users face avoidable issues. Here’s how to handle them.

1. Income Proof Rejected

This is the most common problem.

To avoid rejection:

• Ensure the file shows your name, income, and bank details
• Submit a recent document (less than 6 months old for bank statements)
• Make sure the file is clear and not password-protected

2. No Salary Slip or ITR? Here’s What You Can Use

If you are a student, freelancer, homemaker, or someone without formal income documents, Zerodha still accepts:

• Bank statements
• Demat holding statements
• Fixed deposit receipts
• Net worth certificates

These are widely used alternatives.

3. e-Sign Not Working

Occurs mostly during currency or commodity F&O activation.

Fixes:

• Use Chrome or Firefox
• Disable private browsing
• Ensure the Adhaar mobile number is active
• Enable pop-ups

4. Delay Beyond 72 Hours

If your segment is still not active:

• Raise a ticket on support.zerodha.com
• Check if additional documents were requested
• Re-upload if required

5. Minor or Corporate Accounts Cannot Activate Online

If you fall under these categories:

• Minors → F&O not permitted
• Corporate, HUF, Trust, LLP → must complete offline activation forms

6. Confusion Between Equity F&O vs Currency/Commodity

Each segment requires separate activation:

• Equity Derivatives → NSE F&O
• Currency Derivatives → NSE Currency
• Commodity Derivatives → MCX

Commodity also requires classification (VCP/Farmer/Other).

Frequently Asked Questions (FAQs)

1. How long does Zerodha take to activate F&O?
Zerodha usually processes F&O activation within 24–72 working hours. You’ll receive an email and SMS once approved.

2. What documents can I upload for F&O activation?
You can submit any one of the following: bank statement, salary slip, ITR, Form 16, demat holding statement, FD receipt, or a CA-issued net worth certificate.

3. Can a minor activate F&O in Zerodha?
No. Minors cannot trade derivatives or activate F&O segments as per SEBI regulations.

4. Is income proof mandatory for F&O activation?
Yes. SEBI requires income proof for all F&O traders across all brokers.

5. I don’t have a salary slip. Can I still activate F&O?
Yes. You can use your demat statement, bank statement, FD receipt, or net worth certificate.

6. Can I enable only Equity F&O without commodity or currency?
Yes. Each segment is independent. You can activate Equity F&O alone.

7. Can NRI clients activate F&O?
Only NRO (non-PIS) account holders can activate derivatives. NRE-PIS accounts cannot.

8. Can I disable the F&O segment later?
Yes. You can raise a segment deactivation request via Console.

9. Do I need to maintain a minimum income to keep F&O active?
No. Once approved, the segment remains active unless you manually disable it or fail to meet future regulatory updates.

10. Can I start trading immediately after activation?
Yes. Once your F&O segment shows “Active,” you can place orders instantly.

Conclusion

Activating F&O in Zerodha is a straightforward online process that takes only a few minutes to complete. The essential step is uploading valid income proof that meets regulatory requirements. Once submitted, Zerodha typically activates your F&O segment within 72 working hours.

Before applying, keep your documents ready, ensure your Aadhaar mobile number is active for e-Sign, and understand the financial risks associated with derivatives trading. After activation, set up your trading environment with adequate margin, risk controls, and a clear understanding of F&O products.

Quick Checklist Before Applying:

• Resident individual or NRO (non-PIS) account
• Valid income proof ready
• Aadhaar-linked mobile for OTP/e-Sign
• Awareness of risks and margin requirements
• Correct segment (Equity/Currency/Commodity) selected

With the right preparation, activating F&O in Zerodha is smooth, fast, and fully compliant, helping you start trading derivatives confidently and responsibly.