India’s largest MF distributor NJ India will soon launch its mutual fund business.
SEBI has given in-principle approval to NJ India to set up its AMC business.
Earlier, SEBI had given in-principle approval to Samco Securities and Muthoot Finance. While Samco Securities is likely to launch its MF business this year, Muthoot Finance has acquired IDBI Mutual Fund.
Sharing his plans on AMC business, Neeraj Choksi, co-founder, NJ India, told Cafemutual that the new AMC would focus on passive funds such as quant funds and smart beta ETFs to grow business. He believes that just like developed markets, passive funds and ETFs have great potential to grow in India. Also, he said that new fund house would be open for all distributors.
Choksi said that NJ India has hired Anand Shah to set up their AMC business. Anand Shah was Dy. CEO & Chief Investment Officer of BNP Paribas MF before joining NJ Advisory Services as its CEO. Currently, he is responsible for portfolio management services (PMS) business of NJ group.
Choksi further said that NJ India aims to launch their AMC business in the next six months subject to final approval from SEBI.
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.
