2 hrs ago
Zerodha Receives SEBI Approval for Merchant Banking Licence
Zerodha is a company best known for helping people buy and sell stocks.
It has received approval to move into a new business called merchant banking.
Merchant bankers help companies raise money from investors.
They can manage activities such as IPOs, rights issues and other fundraising deals.
Zerodha still needs to complete its final registration with SEBI before it can begin this work.
This would give Zerodha a role in investment banking alongside other financial institutions.
The company has already expanded into asset management, lending and overseas investment services.
India’s IPO market was slow earlier in 2026 but became more active in July and August.
Zerodha’s entry could create more competition in the merchant banking industry.
Zerodha’s application for a merchant banking licence has received approval from SEBI, though final registration remains pending.
Zerodha Corporate Advisors submitted the application on April 27, 2026.
Once registered, Zerodha can manage IPOs, FPOs, rights issues and other fundraising transactions.
The move expands Zerodha beyond stockbroking into investment banking and adds competition to merchant banking.
SEBI had 248 registered merchant bankers as of August 31, 2026, while India’s IPO activity improved in July and August after a slower first half.
- Who
- Zerodha, through Zerodha Corporate Advisors, and the Securities and Exchange Board of India (SEBI).
- What
- SEBI has approved Zerodha’s application for a merchant banking licence, subject to final registration.
- Where
- India’s capital markets, including potential operations through GIFT City.
- When
- The application was submitted on April 27, 2026; SEBI data cited in the report was current as of August 31, 2026.
- Why
- Zerodha is expanding beyond online stockbroking into investment banking and capital-raising services.
Key facts
- Applicant
- Zerodha Corporate Advisors
- Regulator
- Securities and Exchange Board of India (SEBI)
- Application date
- April 27, 2026
- Licence status
- Application approved; final registration pending
- Potential services
- IPO, FPO, rights issue and other fundraising management
- Registered merchant bankers
- 248 as of August 31, 2026
- Related expansion
- Zerodha has entered asset management, lending and overseas investment services
Sources
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