Bajaj Finserv has become the latest financial services major to receive the regulatory go-ahead to set up its mutual fund arm. In a stock exchange statement issued on Tuesday, the company stated that it has received an in-principle approval from the capital market regulator.
“This is to inform that Company has received an In-Principle approval from Securities and Exchange Board of India (SEBI) vide their letter dated 23 August 2021, for sponsoring a Mutual Fund. Accordingly, the Company would be setting up an Asset Management Company and the Trustee Company, directly or indirectly i.e., itself or through its subsidiary in accordance with applicable SEBI Regulations and other applicable laws,” said the stock exchange statement by Bajaj Finserv.
The company had applied for a mutual fund licence on September 28, 2020.
The latest approval comes close on the heels of Samco Securities also getting the SEBI nod for launching its mutual fund business.
According to regulatory disclosures, there are a few more entities who have applied to SEBI for a mutual fund licence and their application is under process. Some of the entities are Zerodha Broking, Helios Capital Management, Alchemy Capital Management, Frontline Capital Services, Unifi Capital and Wizemarkets Analytics.
The overall buoyancy in the stock markets has attracted many new investors and mutual funds have also been one of the beneficiaries. According to the Association of Mutual Funds in India (AMFI), the umbrella body of all mutual funds in the country, the total assets under management (AUM) of the fund industry was pegged at Rs 35.35 lakh crore as on July 31.
The AUM of the mutual fund Industry has grown from Rs 7.28 lakh crore as on July 31, 2011 to Rs 35.32 lakh crore as on July 31, 2021. In May 2021, the industry also saw the total number of folios go past the 10 crore mark.
Also read: SEBI's wish for new MF platform triggers debate! Here are the pros and cons Also read: SBI MF rolls out Balanced Advantage Fund with unique withdrawal feature; check out details