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Singapore based iFAST Financial has exited its India business. The company sold its distribution business to Prudent Corporate Advisory. iFAST Financial managed assets of Rs.2000 crore as on March 2022.
The company has asked existing sub distributors to either obtain NOC and shift their assets to individual ARN till the stipulated time period. Post which, the company will shift its entire AUM to Prudent Corporate Advisory. The company is yet to find a buyer for its RIA business.
In a communication sent to sub distributors, the company said, “We are currently working out a seamless transition plan with them to ensure zero disruption to account opening, transactions and SIPs for you. MFDs who wish to opt out will have a window period and iFAST will provide an NOC to initiate the transfer out.”
In its regulatory filing with Singapore Stock Exchange SGX, the company said, “The Board of Directors of iFAST Corporation Ltd. wishes to announce that iFAST India Holdings Pte Ltd, an associate company of the company, has decided to exit its onshore platform service business in India and pivot to focus on providing global Fintech solutions.”
The company attributed their decision to discontinuation of pool account. It said, “Securities and Exchange Board of India (SEBI) has announced the discontinuation of the usage of pool account for mutual fund transactions with effect from July 1, 2022. iFast Financial has assessed that this new regulation has fundamentally undermined the ability of the company to provide efficient online platform services to its clients, advisers and business partners in India, and has decided to exit its onshore platform service business. The board of the company will work towards ensuring a smooth transition for existing clients and partners.”
