Policy · Professional & Local Services

Zerodha seeks SEBI approval to enter investment banking

By Startup Enthusiast · 29 June 2026

What they do

Zerodha is applying for a Category I merchant banking licence from SEBI to expand into investment banking services

The application was filed in April 2026 and is currently under review by the market regulator

Zerodha aims to diversify its revenue streams amid regulatory changes and declining equities market activity

Zerodha is seeking a Category I merchant banking licence from SEBI to enter the investment banking sector.
The application was filed in April 2026 and is currently under review by the market regulator.
Zerodha aims to offer full-service merchant banking activities, including IPO management, underwriting, and corporate finance advisory services.
The move is part of Zerodha’s broader strategy to diversify its financial services beyond stock broking.
Zerodha has already expanded into asset management, lending, startup investments, and international investing through GIFT City initiatives.

Zerodha is responding to regulatory changes and declining equities market activity that have impacted its core broking business.
The company is competing with established players like Kotak Mahindra Capital and Axis Capital in the merchant banking space.
India’s IPO market is expected to see strong activity, creating opportunities for Zerodha to provide capital markets services.

Zerodha is a leading stock broking platform in India, offering services such as trading, demat account management, and investment advisory.
The company has expanded into asset management through Zerodha Fund House and lending through Zerodha Capital.
Zerodha has also invested in startups through Rainmatter and offers international investing options through GIFT City initiatives.
The company recently launched fixed deposit products on its Coin platform through partnerships with small finance banks.
Zerodha’s financial performance has been impacted by regulatory changes and market conditions, with operating revenue and net profit declining in FY25.

Zerodha will share more details about its business plans once it receives SEBI approval for the merchant banking licence.
The company is expected to compete with established investment banks in the merchant banking space.