India’s largest MF distributor NJ India has applied for the mutual fund license with SEBI.
Talking about their decision to apply for MF business, Neeraj Choksi, co-founder, NJ India, said, "We will look at passive products and ETFs as we believe they have potential to grow. This is already seen globally.”
Further he added that the company does not have any fund house accquistion plans. Instead they are considering the business to be an extension of their distribution business.
In the first three months of CY 2019, three new players including NJ India have shown their interest in MF business. The other two who showed their interests in MF business are SREI and Karvy Stock Broking.
While SEBI data shows that NJ India Invest applied on March 13, Karvy Stock Broking and SREI Infrastructure applied on February 8 and February 11 for MF license, respectively.
Apart from these three companies, Geojit Financial Services, Samco Securities and Equity Intelligence India applied in 2018 for SEBI’s nod to get into MF business.
Last year, Trust Investment Advisors and Muthoot Finance got SEBI in-principle approval to start their asset management business.
SEBI rules say that the sponsor applying for a mutual fund licence must 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.
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