Zerodha gets in-principle approval from Sebi to start mutual fund business




India’s largest broking firm Zerodha has received in-principle approval to set up an asset management company (AMC) company. With this, the discount brokerage joins entities like Samco Securities Bajaj Finserv to get market regulator Sebi’s nod for a mutual fund (MF).


“So, we just got our in-principle approval for our AMC (MF) license. I guess now comes the hard part,” tweeted Nithin Kamath, founder CEO of Zerodha, on Wednesday evening.





In February 2020, the broking company had applied for the AMC license.


Last week, Bajaj Finserv received in-principle approval from Sebi to set up the shop in the Rs 35-trillion Mutual Fund (MF) industry. The Indian MF industry has seen a huge rise in assets, as well as participation from investors, attracting more into the money managing business. In the past few months, the Indian MF industry has seen new players like NJ India Samco Securities setting up shop.


Currently, there are 44 players in the industry with Samco Securities being the 45th player.


According to Sebi, as of June, there were around five entities that were waiting to get in-principal approval. Some of the players are Alchemy Capital Management, Helios Capital Management Unifi Capital Private Limited among others.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information commentary on developments that are of interest to you have wider political economic implications for the country the world. Your encouragement constant feedback on how to improve our offering have only made our resolve commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed updated with credible news, authoritative views incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better more relevant content. We believe in free, fair credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism subscribe to Business Standard.

Digital Editor



Source link