Current Context: On 1 September 2026, the Securities and Exchange Board of India (SEBI) registered Zerodha Corporate Advisors Private Limited, a Zerodha group company, as a Category-I Merchant Banker. The approval marks Zerodha’s entry into investment banking, allowing it to undertake activities such as managing IPOs, follow-on public offers and other equity capital-market transactions.
Key Points:
- Licence Granted By: Securities and Exchange Board of India (SEBI).
- Registered Entity: Zerodha Corporate Advisors Private Limited, the investment-banking arm of Zerodha.
- Category: It has been registered as a Category-I Merchant Banker.
- Application Date: Zerodha Corporate Advisors had applied to SEBI for the licence on 27 April 2026.
- Initial Business Focus: The company plans to begin with equity capital markets, including Initial Public Offerings (IPOs), Follow-on Public Offers (FPOs) and related advisory services.
- Role of Category-I Merchant Banker: Such entities can undertake the full range of permitted merchant-banking activities, including management of main-board public issues, underwriting and issue-related advisory services.
- Capital Requirement: Under SEBI’s revised framework applicable from 3 January 2026, a new Category-I merchant banker must meet a minimum net worth requirement of ₹50 crore and a liquid net worth requirement of ₹12.5 crore.
- Zerodha’s Strategy: The company plans to extend its low-cost and no-hard-selling approach from stock broking to investment-banking and capital-raising services.
- Significance: The licence allows Zerodha to diversify beyond discount broking and participate directly in India’s primary capital market, helping companies raise funds through IPOs and other equity offerings.
Question:
Q1. Which Zerodha group company received a Category-I Merchant Banking licence from SEBI in September 2026?a) Zerodha Broking Limited
b) Zerodha Corporate Advisors Private Limited
c) Zerodha Asset Management Limited
d) Zerodha Capital Markets Limited
Answer: b) Zerodha Corporate Advisors Private Limited was registered by SEBI as a Category-I Merchant Banker on 1 September 2026.
