Nithin Kamath (co-founder of Zerodha) has observed a shift in market dynamics as retail investors begin to participate in stock exchange auction markets. In 2023, Zerodha enabled this participation, and while only 25,000 out of its 1.7 crore clients are actively involved, the effects are significant. Proprietary trading firms that previously dominated these auctions are facing squeezed profits due to increased liquidity and tighter spreads. Auction markets are initiated when a seller fails to deliver shares on time, leading to auctions that often see shares sold at a premium. Historically, this premium allowed specialized traders to profit easily. However, as retail participation grows, these inefficiencies are diminishing. Kamath noted that as more investors become aware of this niche segment, they can sell eligible shares in auctions at a premium, potentially generating near risk-free returns. The auction window typically opens at 2:30 PM and lasts for about 30 minutes, allowing eligible stocks to be bid on through brokers like Zerodha.