New Delhi, June 30 -- Broking platform Zerodha wants to add another business to its growing financial services portfolio: investment banking. The company's application to the Securities and Exchange Board of India (Sebi) for a merchant banking licence, filed on 27 April, is currently under review.

The licence would allow Zerodha to advise companies on fundraising, public issues and other capital market transactions, opening a new revenue stream beyond broking. But can a discount broker carve out a niche in a business dominated by established investment banks? And why is it making the move now? Mint explains.

How do investment banking and stock broking differ?

While both operate in the capital markets, they serve different customers. A ...