Zerodha Seeks SEBI Merchant Banking Licence As Brokerage Pressure Builds
Zerodha Corporate Advisors filed for a SEBI merchant banking licence on April 27, as tighter derivatives rules and lower account-maintenance fees pressure the broker’s core trading business.
Zerodha Files Merchant Banking Application
Zerodha Corporate Advisors has filed an application with the Securities and Exchange Board of India for a merchant banking licence.
MediaNama reported that SEBI’s latest update as of May 31 listed the application date as April 27.
The licence would move Zerodha beyond its core stock broking business if the regulator approves the application.
The filing places Zerodha alongside a dozen other companies waiting for approval to enter investment banking, including InCred Capital and Neo Wealth Management.
Licence Would Add Fundraising And Advisory Work
A merchant banker licence would allow Zerodha to advise companies on fundraising, including initial public offerings and debenture issuance.
It would also open underwriting, securities trading and advisory services.
The licence scope would also let Zerodha serve corporate and wealthy clients through investment, wealth and asset-management work.
Those business lines would diversify Zerodha away from trading-led revenue.
SEBI Rules Have Pressured Trading Revenue
SEBI has tightened retail Futures and Options trading rules to curb excessive speculation.
The report said since October 2024, the Securities Transaction Tax on F&O has been hiked at least twice.
The report said SEBI also increased the maximum investment limit for Basic Service Demat Accounts from Rs 2 lakh to Rs 10 lakh in September 2024.
The report said the change reduced or removed account maintenance charges for investors holding up to Rs 10 lakh in those demat accounts.
Zerodha CEO Nithin Kamath previously linked tighter F&O oversight to weaker revenue and profit in FY25 and Q1 FY26.
A separate Entrackr report said Zerodha lost about 37,000 active clients in May 2026, while Groww added 27,600 active clients during the month.
Zerodha has also entered international equity investment after securing a Global Access Provider licence from IFSCA, the GIFT City authority.
Angel One, Groww and Upstox also secured that licence.
Approval And Revenue Impact Remain Undisclosed
The application does not mean Zerodha has received the licence.
SEBI has not announced approval, operating conditions, a decision date, expected merchant-banking revenue, named IPO mandates or client commitments for Zerodha Corporate Advisors.
