Home / Business and Economy / Zerodha Secures Merchant Banking License from SEBI
Zerodha Secures Merchant Banking License from SEBI
2 Sep
Summary
- Zerodha's merchant banking license application approved by SEBI.
- Operations are expected to commence within a few months.
- Company revenue and profit have seen a decline since FY24.
The Securities and Exchange Board of India (SEBI) has granted approval for Zerodha's merchant banking license application. Zerodha Corporate Advisors had submitted their application on April 27, 2026. Following this approval, the company is preparing to launch its merchant banking operations within the next few months.
Zerodha intends to leverage this new license to manage Initial Public Offerings (IPOs) and provide advisory services for fundraising activities. This expansion into investment banking signifies a new chapter for the prominent brokerage firm, which currently serves over 1.6 crore customers.
Despite this significant regulatory milestone, Zerodha's recent financial performance indicates a market slowdown. Revenue for FY26 stood at ₹7,464 crore, with a profit after tax of ₹4,283 crore. These figures are lower than the company's peak performance in FY24, when revenue reached ₹9,973 crore and PAT was ₹5,495 crore. Brokerage revenue and net transaction charges have also seen a reduction in recent fiscal years.
