Zerodha Gets Sebi Nod for Merchant Banking Licence

New Delhi, Sep 2 (PTI) Brokerage firm Zerodha has received approval from the markets regulator Sebi for a merchant banking licence and plans to commence operations over the next couple of months, a senior official said on Wednesday.

The move marks Zerodha's entry into the investment banking business as the company looks forward to expanding into new business verticals.

In response to a query from PTI, Mohit Mehra, Whole Time Director, Zerodha Corporate Advisors, said, "We've received the licence and will start operations over the next couple of months. We are growing our business into new verticals. Investment banking is a natural extension for us."

The company will initially focus on equity capital markets, including initial public offerings (IPOs), follow-on issues and related advisory services.

The brokerage plans to bring its low-cost and no-hard-selling approach to the investment banking business, with a focus on issuers as well as investors.


"We're starting with equity capital markets: IPOs, follow-on issues and related advisory. The intent is to bring the same low-cost, no-hard-selling approach from the broking side over to issuers and investors," Mehra said.

Founded by brothers Nithin Kamath and Nikhil Kamath, Zerodha has been expanding beyond its core broking business into adjacent financial services.

​It is one of the country's largest stock broking firms.

The merchant banking licence will allow the company to participate in capital market transactions and provide advisory services to companies looking to raise funds through equity markets.

With a growing pipeline of companies tapping the primary market, Zerodha's entry could add another player to the country's increasingly competitive investment banking landscape.