Muthoot Finance gets SEBI’s in-principle approval to start mutual fund operations

Muthoot Finance gets SEBI’s in-principle approval to start mutual fund operations
  • 1
    Share

New Delhi, Oct 4: Non-banking finance company, Muthoot Finance has received an in-principle approval from the Securities and Exchange Board of India to commence asset management operations, according to the latest data on ‘Status of Mutual Fund Applications’.
The company had approached the market regulator for an AMC licence in March last year. At present, it has a mutual fund distribution arm: Muthoot Securities. Muthoot Finance is listed on BSE and NSE as gold financing NBFC. In July, SEBI had given an in-principle approval to Yes Bank and is expected to start operations this year. SEBI has also given consent to Fortune Financial Services and Fortune Credit Capital this year to start their MF business.
Fortune Financial Services has already filed draft offer documents with SEBI to launch its schemes under the name of ITI Mutual Fund.
Data on the SEBI website shows that Trust Investment Advisors, Karvy Stock Broking, Samco Securities, and Equity Intelligence are awaiting approval from SEBI to launch their mutual fund business in India.
As per the SEBI norms, a sponsor applying for a mutual fund licence is required to be in the financial services business for five years and must have a positive net worth for five years. Also, the sponsor should have earned profits in three of the previous five years, including the latest year.