Zerodha has received approval from the Securities and Exchange Board of India (SEBI) to enter the merchant banking business through its wholly owned subsidiary, Zerodha Corporate Advisors Pvt Ltd.
The approval follows the subsidiary’s application for a Category I merchant banking licence, marking Zerodha’s expansion into investment banking and capital markets advisory services.
Mohit Mehra, Whole-Time Director at Zerodha Corporate Advisors, said the subsidiary is expected to begin operations in the coming months. The firm will initially focus on equity initial public offerings (IPOs), with a particular emphasis on supporting new-age companies seeking to raise capital through public markets.
To meet the increased net-worth requirements under SEBI’s revised merchant banking regulations, Zerodha has allocated Rs 55 crore to its merchant banking subsidiary.
The move marks a strategic expansion of Zerodha’s business beyond stockbroking and into the wider capital markets ecosystem. By focusing initially on IPOs and new-age companies, the firm aims to support businesses as they transition from private funding to public-market fundraising.
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