Zerodha Secures SEBI Approval to Launch Category-I Merchant Banking Arm

7 Sept 2026, 6:00 am · 5d ago · 1 min read · Inc42

Discount brokerage giant Zerodha has received approval from market regulator SEBI to operate as a Category-I merchant banker through its subsidiary, Zerodha Corporate Advisors. The license enables the Bengaluru-based firm to manage initial public offerings, follow-on public offers, and other capital market transactions. Zerodha plans to launch these operations over the coming months, directly competing with legacy investment banks like Kotak, Axis Capital, and IIFL. The strategic expansion opens a new fee-based revenue channel as its core retail brokerage business faces margin pressure from tighter regulatory mandates and lower retail derivatives trading activity.