The Securities and Exchange Board of India (SEBI) has mandated that among the pooled investment vehicles, only private equity funds (PEs) can sponsor a mutual fund house, while the entities should have a minimum of five years of experience.
To facilitate the fresh flow of capital into the industry, fostering innovation, encouraging competition, providing ease of consolidation and easing exit for existing sponsors, the capital markets regulator in March allowed PEs to sponsor mutual fund schemes and also permitted the set-up of self-sponsored asset management companies (AMCs).
