Leading stock broker Zerodha received approval from market regulator Securities and Exchange Board of India to enter investment banking, according to data on the regulator's website.
With the nod, Zerodha Corporate Advisors will be able to undertake activities such as managing IPOs and other corporate finance as well as issue-related services.
The firm had applied to Sebi for approval in April for category 1 merchant banking licence. The pivot towards diversified business follows several tightening regulations by Sebi that impacted broker revenues such as removal of client float and tightening of the derivatives market.
Category-1 merchant bankers are full-service intermediaries, which manage IPOs. They can act as underwriters, oversee mergers and acquisitions and provide business valuations, among others. They also act as lead managers in IPOs.
-- Khushboo Tiwari, Business Standard
