SEBI had mandated AMCs to raise their net worth to Rs. 50 crore in three years.
Religare
Invesco Mutual Fund today announced that it has raised its net worth to Rs. 57
crore with effect from May 26. Fund houses are required to raise their net
worth to Rs. 50 crore for which the regulator has given AMCs three years’ time.
The
fund house has allotted equity shares of Rs. 24 crore on rights basis to its
existing shareholders. The rights issue was approved by the board of Religare
Invesco AMC at its board meeting held on May 22, 2014.
Saurabh Nanavati, Managing Director & Chief Executive Officer, Religare Invesco Mutual Fund said, “Both the Joint Venture (JV) partners, Religare and Invesco are bullish on the long term prospects of India and remain committed to grow the Indian business meaningfully in India and overseas. In the calendar year 2014 itself, the Indian JV has successfully launched two global equity schemes in the Indian markets, namely, Religare Invesco Pan European Equity Fund and Religare Invesco Global Equity Income Fund, feeding into Invesco’s Luxembourg range of funds. Invesco, on the other hand, has launched Invesco India Bond Fund that invests in the Indian debt market, on its Luxembourg platform on April 23, 2014. The scheme has been seeded by Invesco and will be marketed to Invesco’s global clients and sub-advised by the Indian JV debt team.”
The
letter confirming compliance with revised net worth requirement has been filed
with SEBI on May 26, 2014 and SEBI has taken the same on its records.
Fund houses are not allowed to launch any new schemes if their net worth is below Rs. 50 crore. Seed capital put by AMCs in their own schemes is also considered a part of their net worth.
