SEBI has recently given in-principle approval to Samco Securities to set up its AMC business, shows the latest data on ‘Status of Mutual Fund Applications’.
Earlier, SEBI had given in-principle approval to Muthoot Finance and Trust Investment. While Muthoot Finance is reportedly in talks with a few fund houses to acquire a stake, there is no update on Trust Investment.
Samco Securities approached SEBI in June 2018. Samco Securities founded by Jimeet Modi is an online discount brokerage firm like Zerodha. The Mumbai based company has also online mutual fund distribution arm called Rank MF.
Meanwhile, SEBI data shows that Frontline Capital, Karvy Stock Broking and NJ India 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.
