Zerodha Gets SEBI Approval For Merchant Banking Entry
· Business · Moneycontrol
Stockbroking platform Zerodha has received approval from SEBI to enter the merchant banking business, with formal registration work currently under way. Merchant banking involves advising companies on fundraising activities, including managing initial public offerings, rights issues, and other capital-raising transactions. The move marks a strategic expansion for the Bengaluru-based discount broker, which has so far built its business around retail equity trading and mutual fund distribution. Exact timelines for the formal registration and the merchant banking arm's launch were not detailed. The brokerage joins a growing list of fintech players seeking to broaden their presence in capital markets beyond core broking services.
Why it matters
Zerodha's entry into merchant banking could intensify competition in the IPO advisory and underwriting space, where traditional investment banks and domestic brokerages like ICICI Securities and Axis Capital currently dominate, potentially giving retail-heavy issuers more options when planning public listings.
Read the original report — Moneycontrol
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