Zerodha cleared as merchant banker

Zerodha has been cleared to enter merchant banking, giving India’s largest retail brokerage a route into IPO management, follow-on offerings, rights issues and equity capital markets advisory. SEBI issued the registration on September 1 to Zerodha Corporate Advisors Pvt, according to the regulator’s website and media reports on Wednesday. (ndtvprofit.com) The move adds a new licence to a group that has already expanded beyond broking into asset management, lending and other financial services. (business-standard.com) ### What exactly did Zerodha get approval for? SEBI’s merchant banker framework governs intermediaries that manage and advise on public issues and other capital-raising transactions. A merchant banker licence allows a firm to work on IPOs, follow-on public offers, rights issues and related capital-markets assignments. (fortuneindia.com) SEBI’s Merchant Bankers Regulations, 1992 remain the governing rulebook, and the regulator issued an updated master circular for registered merchant bankers on July 14, 2026. NDTV Profit reported that Zerodha Corporate Advisors Pvt received the registration on September 1, citing SEBI’s website. Moneycontrol reported that formal registration steps were in process and that the licence would allow Zerodha to participate in IPOs, FPOs, rights issues and other capital-market transactions. (ndtvprofit.com) ### Why is this a bigger move than just one more licence? Nithin Kamath and Nikhil Kamath built Zerodha as a discount brokerage, and the merchant banking approval extends that model into a part of finance long dominated by banks and specialist advisory firms. Fortune India reported that Zerodha plans to launch investment-banking operations over the next couple of months, initially focusing on IPOs, follow-on issues and equity capital markets advisory. (sebi.gov.in) Moneycontrol said Zerodha is positioning the business around a low-cost, no-hard-selling approach. That matters because merchant banking fees in India have historically rewarded distribution strength, issuer relationships and execution track record, while Zerodha’s edge has come from technology, pricing and a large retail investor base. (ndtvprofit.com) ### Why does the timing line up with the market? India’s primary market has accelerated in recent months. Prime Database data, reported by Business Standard, showed 60 IPOs raised ₹72,165 crore in January through August 2026. July and August alone accounted for 33 deals and ₹49,592 crore, or nearly 69% of the total raised in the first eight months. (fortuneindia.com) August was the busiest month by deal count, with 21 IPOs raising ₹20,944 crore, Business Standard reported. Fortune India separately reported that more than 25 companies were looking to tap the market in September and that two large potential offerings — Jio Platforms and the National Stock Exchange — could help push fundraising higher. (moneycontrol.com) ### What does Zerodha still need before it starts doing deals? SEBI’s own merchant bankers page showed 248 registered intermediaries as of August 31, 2026, before Zerodha’s approval was reflected in public counts. That means Zerodha’s entry would make it the next addition to the register once the regulator’s list updates. Zerodha told multiple outlets that operations should begin in the next couple of months. (business-standard.com) Mint reported that the approval was subject to registration and regulatory completion, while Fortune India said the firm planned to begin with IPO and ECM assignments rather than a broader advisory push from day one. ### What should readers watch next? (business-standard.com) September is the next test. Business Standard said 75 companies were awaiting SEBI approval with an estimated pipeline of ₹2.02 lakh crore as of late August, while Fortune India said September fundraising could approach ₹70,000 crore if larger issues proceed. Zerodha’s first public mandates, once disclosed, will show whether it starts with SME listings, mainboard IPOs or advisory roles on follow-on deals. (business-standard.com) (livemint.com) (sebi.gov.in)