Archive · 3 Sep 2026
Zerodha Gets SEBI Approval To Enter Merchant Banking
Zerodha is a company that helps people buy and sell investments.
It now wants to help companies raise money from the public.
Its separate company, Zerodha Corporate Advisors, received approval from SEBI to become a merchant banker.
Merchant bankers can help organize IPOs and other fundraising activities.
Zerodha plans to start with IPOs for newer companies.
It put ₹55 crore into this new business.
The company kept the business separate from its stockbroking operations to help with compliance.
Zerodha is expanding because its traditional brokerage income has fallen and competition from Groww has increased.
Reports differ on whether the approval is complete registration or whether a final registration step is still pending.
Zerodha Corporate Advisors received SEBI approval to operate as a Category I merchant banker, although one report said final registration remained pending.
The subsidiary plans to begin operations within the next few months, initially targeting equity IPOs by new-age companies.
Its services may include managing IPOs, FPOs, rights issues and advising companies on equity fundraising.
Zerodha invested ₹55 crore in the business and separated it from its broking operations to strengthen compliance safeguards.
The move comes as Zerodha diversifies amid weaker broking revenue and intensifying competition from Groww in India’s retail brokerage market.
- Who
- Zerodha, through its wholly owned subsidiary Zerodha Corporate Advisors Pvt Ltd, and the Securities and Exchange Board of India (SEBI).
- What
- SEBI approved Zerodha’s move into merchant banking; the subsidiary plans to advise on and manage equity fundraising, particularly IPOs.
- When
- The application was submitted on April 27, 2026, and operations are expected to begin within the next few months.
- Where
- India’s capital markets; Zerodha also has a broker-dealer registration in GIFT City for overseas investment services.
- Why
- Zerodha is diversifying beyond stockbroking while its brokerage revenue faces pressure and competition in retail broking intensifies.
Report One
Report Two
Approval and registration status
Report One
Moneycontrol’s report said SEBI had approved the application but that final registration with the regulator was still pending.
Report Two
Inc42 quoted Zerodha’s whole-time director Mohit Mehra as saying SEBI had granted the merchant banking registration and that the company was setting up operations.
How performance should be measured
Report One
Active-client figures show stronger retail-broking momentum for Groww: 1.31 crore active clients versus Zerodha’s 67.62 lakh in July 2026.
Report Two
Zerodha says active-client market share is not the best measure and points to ₹9.05 lakh crore in assets held on its platform in FY26.
- Applicant
- Zerodha Corporate Advisors Pvt Ltd
- Regulator
- Securities and Exchange Board of India (SEBI)
- Licence
- Category I merchant banking licence
- Initial focus
- Equity IPOs, particularly for new-age companies
- Capital invested
- ₹55 crore
- FY26 brokerage revenue
- ₹2,738 crore, down 10.4% from ₹3,066 crore in FY25
- FY26 net profit
- ₹4,283 crore, up 1.2% from ₹4,231 crore in FY25
- Retail broking comparison
- In July 2026, Groww had 1.31 crore active clients versus Zerodha’s 67.62 lakh
