PPFAS Mutual Fund has raised its net worth to over Rs.50 crore in order to comply with SEBI’s net worth criteria, said a press release issued by the company.
In February 2014, SEBI had mandated fund houses to raise their net worth to a minimum of Rs. 50 crore by May 2017. In the meantime, AMCs which didn’t comply with the rule were not allowed to launch any new schemes.
The fund house said that the audited net worth of PPFAS AMC stands at Rs. 51.53 crore as on 30 November 2016. It has infused capital of Rs. 4.66 crore by undertaking a rights issue. This issue was approved by the Board of PPFAS AMC in its board meeting held on 26 September 2016.
Neil Parag Parikh, Chairman and CEO, PPFAS Mutual Fund said, “PPFAS is committed to build the business to the next level. We were confident of achieving the requirement of Rs. 50 crore of net worth and I am happy to inform you that we have reached that mark before the time set by the regulator.”
He further added, “Apart from the rights issue, we have relied on internal accruals for this accretion. Also, the fact that the 'Skin in The Game' of the Parikh family and other key management personnel has actually increased after this issue is a firm demonstration of our commitment to the company launched by my father.”
