India's largest discount brokerage platform, Zerodha, is looking to step into the investment banking field and has applied to the Securities and Exchange Board of India (Sebi) for approval in this regard. Through its wholly owned subsidiary, the company has filed an application, seeking permission to function as a merchant banker. The application, submitted in April 2026, is currently under review by Sebi.

Once it gets the approval, Zerodha will be able to engage in various investment banking functions such as handling initial public offerings (IPOs), corporate finance advisory services, issue management, and other capital market activities.

Key Highlights

• Zerodha seeks SEBI approval to launch investment banking and IPO advisory services across India's capital markets.
• Merchant banking entry marks Zerodha's strategic expansion beyond broking into comprehensive corporate finance solutions. 

Zerodha Expands Beyond Broking

The shift represents a major strategic push for Zerodha, a company that gained popularity for its low-cost, online stock brokerage services and is one of India's largest retail investing platforms. The company's move into investment banking is a move that would help it expand its financial services portfolio and also be more directly involved with the emerging primary market Indian ecosystem.

In recent years, India's IPO market has been robust, with more and more retail investors, startups and established companies gaining access to the public markets to raise capital. Zerodha's proposed entry could give it a head-to-head competition with the merchant banking and investment banking companies existing in the country.

Also Read: Zerodha Launches Fixed Deposits on its Investment Platform Coin

Regulatory Approval Awaited

According to the filing, Sebi is currently evaluating the application. In India, public issue, rights issue, and all kinds of corporate fund raising transactions require merchant banker registration.

It's part of a wider shift by fintech companies to diversify beyond their original services into advisory, wealth management, and capital market services, as other companies vying for market share in financial services.

Why It Matters

• Brokerage platform Zerodha is applying to get the clearance from Sebi to be a merchant banker.
• The application was submitted in April 2026 and is being reviewed by the regulators.
• IPO Management and Corporate Finance advisory would be part of the proposed business.
• The relocating move is a sign of Zerodha's foray into the investment banking business beyond discount broking.