Zerodha gets SEBI nod to enter merchant banking through Corporate Advisors

Zerodha Corporate Advisors has received SEBI approval as a Category-I merchant banker, taking the brokerage into IPO and capital-markets advisory. Operations are expected to begin in the coming months, with the business projected to contribute in the low single digits over three to five years.

— Source publishedMon, 7 Sept, 2026, 06:00 IST·First seen Mon, 7 Sept, 2026, 08:28 IST·Source Inc42

What happened

Zerodha Corporate Advisors received SEBI approval to operate as a Category-I merchant banker, entering IPO and capital-markets advisory. The move diversifies

Key facts

  • September 1
  • FY26 revenue close to ₹8,800 Cr
  • FY26 brokerage revenue ₹2,738 Cr
  • FY25 brokerage revenue ₹3,066 Cr
  • low single-digit revenue contribution expected over 3-5 years

Why this matters

The Category-I merchant-banking licence positions Zerodha to compete for IPO mandates and ecosystem partnerships by pairing advisory services with access to a large, engaged investor base.

What to watch

  • Announcement of first lead-manager or co-lead-manager mandate and its deal size.
  • Senior dealmaker hiring, especially from domestic merchant banks or investment banks.
  • SEBI observations, compliance disclosures or any restrictions related to conflict-of-interest controls.
  • Growth in India’s IPO, SME listing and secondary issuance pipeline.
  • Evidence that Zerodha offers issuer-side products linking IPO distribution, shareholder analytics or investor engagement.
  • Revenue disclosures indicating whether merchant banking is approaching the stated low-single-digit contribution target.
  • Hire senior merchant bankers, compliance leaders, legal staff and sector-focused deal teams from established Indian investment banks.
  • Build issuer-originination channels among venture-backed startups, listed SMEs, promoters and mid-market companies preparing for IPOs.
  • Develop IPO analytics, digital due-diligence workflows and retail-demand intelligence as differentiated pitching tools.
  • Pursue early mandates in SME IPOs, pre-IPO placements, rights issues, buybacks or smaller mainboard transactions to establish a track record.
  • Maintain separation between brokerage customer data, research/distribution activities and merchant-banking conflict-management processes under SEBI scrutiny.

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