Mahindra AMC receives Sebi nod to enter MF business
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Mahindra AMC receives Sebi nod to enter MF business

In a BSE filing, MMFS said: "Mahindra Asset Management Company Private Limited, a wholly-owned subsidiary of the company, on February 4 received the approval from the Securities and Exchange Board of India (Sebi) to act as the asset management company to the Mahindra Mutual Fund."

 PTI   
  • New Delhi,  February 6, 2016  
  • |  
  • UPDATED   14:55 IST
Mahindra AMC receives Sebi nod to enter MF business

Mahindra Asset Management Company has received markets regulator Sebi's approval to set up mutual fund business, becoming the latest Indian conglomerate to enter this segment.

Mahindra AMC, a wholly owned subsidiary of Mahindra and Mahindra Financial Services (MMFS), got the regulator's nod on February 4.

In a BSE filing, MMFS said: "Mahindra Asset Management Company Private Limited, a wholly-owned subsidiary of the company, on February 4 received the approval from the Securities and Exchange Board of India (Sebi) to act as the asset management company to the Mahindra Mutual Fund."

Mahindra AMC also named Ashutosh Bishnoi as its CEO and MD.

"Our customer base of nearly 4 million and over 1,200 branches of Mahindra Finance will play a critical role in ensuring success in the mutual fund business through best-in-class customer service," Mahindra Group Financial Services President and MMFS MD Ramesh Iyer said.

The company said it will mainly focus on semi-urban and rural markets with its offerings.

"We believe that investors in these markets have an even greater savings potential than urban markets, but they do not have either access or awareness of market-related financial instruments such as mutual funds. So, our task will be to create access and awareness," the company's newly-appointed CEO said.

Bishnoi added, "With the proven success and strength of the relationships that Mahindra Finance already has, we believe that we are well-poised to take this business forward in same markets."

At present, there are over 40 mutual fund houses operating in the country.

While the Indian mutual fund industry has been growing steadily, a number of foreign fund houses have exited the country's mutual market in the recent past and in most cases, the businesses were acquired by Indian entities.

In October last year, Reliance Capital Asset Management (RCAM) announced takeover of global giant Goldman Sachs' mutual fund business in India for Rs 243 crore.

Standard Chartered sold its mutual fund business in India to IDFC in 2008 and L&T Finance bought mutual fund operations from Fidelity in 2012, while in 2014, HDFC MF acquired Morgan Stanley's fund business here.

Besides, Birla Sunlife has acquired ING Mutual Fund, Kotak MF has bought PineBridge Mutual Fund and Pramerica has taken over Deutsche Bank's mutual fund business in India.

MMFS is part of the Anand Mahindra-led Mahindra group. The financial services arm has more than 1,200 branches across the country with over 16,000 employees.