There is a good news for sub distributors of Karvy Stock Brokers. Prudent Corporate Advisory Services has won the bid to acquire the mutual fund assets under advisory (AUA) of Karvy Stock Broking, according to sources.
Karvy Stock Broker had a network of sub distributors to distribute mutual funds. However, NSE declared the company as defaulter due to alleged mis-use of investors’ money. Many sub distributors working with the company were stuck due to this.
As of July-end 2021, the mutual fund distributor had 11 lakh folios with total assets under management of Rs 9,261 crore, according to the bid document released by stock exchanges.
The bidding opened on September 10 and was supposed to close on September 24 but was later extended to October 11. The exchanges are yet to officially declare the winner.
Prudent is the sixth largest mutual fund distributor in India. The national distributor enrols MFDs as its sub-brokers for selling MFs and other financial products. There are over 18,000 MFDs associated with the company.
This is the second phase of auction of Karvy Stock Broking's businesses. Earlier this year, IIFL Securities and Axis Securities acquired Karvy's demat accounts and trading & broking accounts by successfully bidding for the assets.
