Zerodha applies for merchant banking licence

Online brokerage firm Zerodha has applied to capital markets regulator Sebi for a merchant banking licence as it looks to expand its financial services offerings.

The application was filed through its wholly-owned subsidiary Zerodha Corporate Advisors Pvt Ltd, according to Sebi records.

The application, submitted on April 27, is currently under review.

If the licence is granted, Zerodha will be able to manage Initial Public Offerings (IPOs), advise companies on fund raising, and offer other merchant banking services.

Currently, the broking house has over 1.6 crore customers, who place billions of orders every year.

Apart from its brokerage business, Zerodha manages its own mutual fund operations through Zerodha AMC.

Moreover, 12 more applications including those from InCred Capital Financial Services, Neo Wealth Management and Societe Generale Securities India have been filed with Sebi seeking clearance for a merchant banking licence, the regulator's website showed.

In December 2025, Sebi amended rules governing merchant bankers, thereby revising the net worth and liquid net worth requirements and introduced a framework for segregation of activities through separate business units.

The IPO market remained subdued for sometime now due to ongoing tension in the Middle East especially between the United States and Iran. However, there seems to be some signs of revival in the stock markets as the two countries have signed a truce agreement.

Last year was a fairly good year for the Indian startup ecosystem with more than a dozen companies going public and there was expectation this momentum would continue even in 2026. However, the tensions in the Middle East derailed the plans.

Though, there are many Indian startups which have lined up plans to go public. The biggest focus is on quick commerce startup Zepto, where it plans to raise around Rs 8,000 crore. Even PhonePe has lined up plans to go public.