Zerodha Broking Ltd.'s AIA unit received approval from the Securities and Exchange Board of India on September 1 to operate as a merchant banker. Founded by billionaire Nithin Kamath, the company secured the license as India's equity capital market booms, drawing new entrants seeking record fees. The approval allows Zerodha Corporate Advisors Pvt. to advise on and manage initial public offerings and other capital-market transactions.

This expansion moves the firm beyond its core broking business into a new revenue stream. The development highlights the growing activity in India's IPO market, which has seen increased participation from established financial players.