SEBI had mandated AMCs to raise their net worth to Rs. 50 crore in three years.
Principal PNB Mutual Fund has raised its net worth to Rs. 77 crore, says a press release issued by the company.
Recently, Motilal Oswal and Religare Invesco had raised their net worth in order to comply with SEBI’s norm.
SEBI had mandated fund houses to raise their net worth to a minimum of Rs. 50 crore in three years. Last month, SEBI came out with a circular in which it allowed fund houses having a net worth of less than Rs. 50 crore to launch two scheme a year till the time they meet the mandatory net worth requirement. Such fund houses can also count seed capital in their schemes to comply with the net worth norm.
Ned Burmeister, Senior Vice President and Chief Operating Officer of Principal International said “This is in line with our ambitious plans for expansion & consolidation in our chosen emerging economies. We firmly believe in India’s long term growth story and the potential of its Mutual Fund Industry and are confident that the Principal’s brand along with its global investment expertise will eventually make us the most preferred asset manager in the area of goal & advisory voluntary savings including providing for retirement.”
Rajan Ghotgalkar, Country Head, Principal India said, “We are very upbeat about the long term potential of the Indian Mutual Fund Industry. We now look forward to aggressively pursue our plans to introduce new products with distinct value proposition in line with our true-to-label philosophy.”
The letter confirming compliance with revised capital adequacy requirement has been filed with SEBI on December 11, 2014.
Principal Mutual Fund manages assets of Rs. 4,753 crores as on September 2014.
