Zerodha gets SEBI approval for merchant banking licence, says, ‘will start operation soon’
Market regulator Securities and Exchange Board of India (SEBI) has approved Zerodha’s application for a merchant banking licence. The licence is not yet formally registered, and Zerodha still needs to complete all the remaining regulatory processes.
“We’ve received the licence and will start operations over the next couple of months,” Mohit Mehra, whole-time director, Zerodha Corporate Advisors.
Zerodha Corporate Advisors had filed the application with SEBI on April 27, 2026, according to Sebi records.
How will it help Zerodha?
If the licence is granted, Zerodha will be able to manage Initial Public Offerings (IPOs), advise companies on fundraising, and offer other merchant banking services.
“We are growing our business into new verticals. Investment banking is a natural extension for us,” the company said
Currently, the broking house has over 1.6 crore customers, who place billions of orders every year.
InCred, Neo Wealth, others seek merchant banking approval
Apart from Zerodha, 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, whereby revising the net worth and liquid net worth requirements and introduced a framework for segregation of activities through separate business units.
Zerodha pivots to AUM as growth slows
Last month, Zerodha founder and CEO Nithin Kamath said the brokerage is shifting its focus from gaining active-client market share to growing assets under management.
He noted that the pace at which Zerodha is adding new accounts has moderated as the broader market has not performed strongly. He also said that the decline in account additions coincided with the market peaking in September 2024.
Zerodha’s financial numbers also show the impact of the changing market environment. Revenue stood at ₹7,464 crore in FY26, while profit after tax (PAT) was ₹4,283 crore. Both numbers remained below the company’s FY24 peak, when revenue stood at ₹9,973 crore and PAT reached ₹5,495 crore.
Brokerage revenue declined from ₹3,600 crore in FY24 to ₹3,066 crore in FY25 and ₹2,738 crore in FY26. At the same time, net transaction charges fell from ₹810 crore in FY24 to ₹400 crore in FY25 and zero in FY26.
