SEBI Grants Category-I Merchant Banking Licence to Zerodha 📅 Date: September 2026 🏢 Regulator: Securities and Exchange Board of India (SEBI) 🏦 Company: Zerodha Corporate Advisors 🎯 Purpose: Entry into investment banking and capital market-related services Key Development ◉ SEBI granted a Category-I Merchant Banking licence to Zerodha Corporate Advisors, the investment banking arm of Zerodha. ◉ Zerodha Corporate Advisors applied for the licence on April 27, 2026. ◉ It received registration on September 1, 2026. ◉ With this registration, it became the 249th registered merchant banker in India. ◉ Operations are expected to commence within months across India. Zerodha's Entry into Investment Banking ◉ The move aims to diversify Zerodha's business beyond its traditional broking business. ◉ It will allow the company to enter areas such as: → Investment banking → Advisory services → Capital-raising services → Equity capital markets Initial Focus Areas ◉ Zerodha will initially focus on equity capital markets, including: → Initial Public Offerings (IPOs) → Follow-on Public Offers (FPOs) → Advisory services for issuers and investors Business Model ◉ Zerodha plans to apply its existing low-cost and client-centric approach to investment banking. ◉ The firm aims to provide low-cost services without aggressive selling practices. ◉ Its investment banking model will focus on: → Transparency → Efficiency → Cost-effective services Category-I vs Category-II Merchant Bankers ◉ Category-I Merchant Bankers → Can manage main-board public issues. → Can undertake underwriting activities. → Minimum net worth requirement: ₹50 crore. → Cap: 20 times liquid net worth. ◉ Category-II Merchant Bankers → Cannot manage main-board public issues. → Minimum net worth requirement: ₹10 crore. About Zerodha 🏢 Founded: August 2010 📍 Founded in: Bengaluru, Karnataka 👤 Founders: Nithin Kamath & Nikhil Kamath 💼 Sector: Fintech & Brokerage 📌 Key Areas: Broking, asset management, lending and investment platforms Exam Hints ✓ What? → SEBI granted Category-I Merchant Banking licence ✓ To Whom? → Zerodha Corporate Advisors ✓ Regulator → SEBI ✓ Application Date → April 27, 2026 ✓ Registration Date → September 1, 2026 ✓ Registration Number → 249th registered merchant banker in India ✓ Initial Focus → Equity Capital Markets ✓ Key Services → IPOs, FPOs & advisory services ✓ Category-I Minimum Net Worth → ₹50 crore ✓ Category-II Minimum Net Worth → ₹10 crore ✓ Category-I Liquid Net Worth Cap → 20 times ✓ Zerodha Founders → Nithin Kamath & Nikhil Kamath Quick Facts → Company → Zerodha Corporate Advisors → Parent/Group → Zerodha → Licence → Category-I Merchant Banking → Regulator → SEBI → Registration → September 1, 2026 → Merchant Banker Rank → 249th → Application → April 27, 2026 → Main Focus → Equity Capital Markets → IPO → Initial Public Offering → FPO → Follow-on Public Offer → Category-I Net Worth → ₹50 crore → Category-II Net Worth → ₹10 crore → Zerodha Founded → August 2010 → Founders → Nithin Kamath & Nikhil Kamath → Headquarters/Origin → Bengaluru, Karnataka Significance ✅ The licence marks Zerodha's expansion from online broking into investment banking. ✅ The company can now focus on capital-market and advisory services under the Category-I merchant banking framework. ✅ The move could diversify Zerodha's business model and strengthen its presence across India's financial-services ecosystem. ✅ Its proposed low-cost and transparent approach could bring its established brokerage philosophy into investment banking. 💡 Final Takeaway SEBI granted a Category-I Merchant Banking licence to Zerodha Corporate Advisors on September 1, 2026, making it the 249th registered merchant banker in India. The company plans to initially focus on equity capital markets, including IPOs, FPOs and advisory services, marking Zerodha's expansion beyond broking into investment banking.
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