Mumbai, June 29 -- Stock broking platform Zerodha is preparing to enter the investment banking business as it looks to broaden its presence across the capital markets ecosystem.

According to reports, the Bengaluru-based company has applied to the Securities and Exchange Board of India (SEBI) for a Category-I merchant banking licence. The application was filed in April and is awaiting regulatory approval.

If approved, the licence will allow Zerodha to manage initial public offerings (IPOs), advise companies on raising capital, and provide merchant banking services such as issue management and corporate advisory.

The move marks another step in Zerodha's expansion beyond its core broking business. Over the years, the company has diversifi...