THEBUSINESSBYTE BUREAU
NEW DELHI, JUNE 29, 2026
In a strategic move to diversify its financial services
portfolio, online brokerage giant Zerodha has applied to the Securities and
Exchange Board of India (SEBI) for a merchant banking licence, paving the way
for its entry into investment banking and corporate advisory services.
The application has been submitted through its wholly-owned
subsidiary, Zerodha Corporate Advisors Pvt. Ltd., according to records
available with the capital markets regulator. Filed on April 27, the proposal is
currently under SEBI's review.
If approved, the licence will enable Zerodha to manage
Initial Public Offerings (IPOs), advise corporates on capital raising, and
offer a range of merchant banking services, marking a significant expansion
beyond its core brokerage business.
The move comes as Zerodha continues to strengthen its
position in India's financial ecosystem. The brokerage currently serves more
than 1.6 crore customers, facilitating billions of trading orders annually. In
addition to its brokerage operations, the company has also established a
presence in the asset management space through Zerodha Asset Management Company
(AMC).
Zerodha is among a growing list of firms seeking to enter the merchant banking segment. According to SEBI's website, 12 other entities, including InCred Capital Financial Services, Neo Wealth Management, and Societe Generale Securities India, have also submitted applications for merchant banking licences.
The surge in applications follows SEBI's regulatory overhaul in December 2025, when the market watchdog revised the net worth and liquid net worth requirements for merchant bankers and introduced a framework mandating the segregation of regulated activities through separate business units.
