SEBI has recently given in-principle approval to Muthoot Finance to set up its AMC business, shows the latest data on ‘Status of Mutual Fund Applications’.
Earlier, SEBI had given in-principle approval to Yes Bank and Fortune Financial Services & Fortune Credit Capital. While Fortune Financial Services has already filed draft offer documents with SEBI to launch its schemes under the name of ITI Mutual Fund, Yes Bank is expected to launch its operations this year.
Muthoot Finance had approached SEBI for AMC license in March 2017. Currently, the company has a mutual fund distribution arm. Muthoot Finance is listed on BSE and NSE as gold financing NBFC.
Meanwhile, SEBI data shows that Trust Investment Advisors, Karvy Stock Broking, Samco Securities and Equity Intelligence are awaiting approval from SEBI to launch mutual fund business in India.
SEBI rules say that the sponsor applying for a mutual fund licence is required to be in the financial services business for five years and needs to have a positive net worth for five years. The sponsor should have earned profits in three of the previous five years, including the latest year. SEBI conducts an on-site due diligence of sponsors before granting approval.
