Source: BS
Context: SEBI granted a Category-I merchant banking licence to Zerodha Corporate Advisors, a subsidiary of Zerodha — enabling its entry into investment banking with a focus on capital market services.
Category-I merchant bankers
- Can manage main-board public issues and undertake underwriting
- Minimum net worth: ₹50 crore — raised from the earlier ₹5 crore
- Business capped at 20 times liquid net worth
Category-II merchant bankers
- Cannot manage main-board public issues
- Minimum net worth: ₹10 crore
What Zerodha will do
- Initially focus on equity capital markets — IPOs, follow-on public offers (FPOs) and advisory services for issuers and investors
- Plans to replicate its brokerage philosophy — low-cost services without aggressive selling, emphasising transparency and efficiency
- Objective: diversify beyond broking into advisory and capital-raising services
