Zerodha has received approval from the Securities and Exchange Board of India (SEBI) to start merchant banking operations, marking the brokerage’s entry into investment banking.
Zerodha Corporate Advisors, which applied for a Category-I merchant banking licence on April 27, has received its registration from the market regulator, according to SEBI’s update. The registration is dated September 1.
“We’ve received the licence and will start operations over the next couple of months,” Mohit Mehra, Whole-time director at Zerodha Corporate Advisors, said. The company will initially focus on equity capital markets, including initial public offerings (IPOs), follow-on issues and related advisory services, Mehra said.
Competitive entry
Zerodha’s entry will allow it to compete with established investment banks in managing public issues and providing corporate finance and issue-related services. Category-I merchant bankers can manage main-board public issues and also undertake activities such as underwriting and other issue-related services.
The move is part of Zerodha’s broader expansion beyond its core broking business. The Bengaluru-based financial services group has in recent years entered asset management and lending, while its investment arm Rainmatter invests in financial and technology businesses. Zerodha has also obtained a broker-dealer registration in GIFT City to facilitate overseas investments.
The expansion comes as the company’s core broking income has moderated from its peak. Zerodha reported revenue of ₹7,464 crore and profit after tax of ₹4,283 crore in FY26. Its brokerage revenue declined to ₹2,738 crore in FY26 from ₹3,066 crore in FY25 and ₹3,600 crore in FY24.
With Zerodha’s registration, the number of registered merchant bankers has risen to 249, according to the latest SEBI data.