Mumbai: Brokerage firm Zerodha has received in-principle approval from the Securities and Exchange Board of India (SEBI) to launch its asset management company. Zerodha Founder and CEO, Nithin Kamath said in a tweet on Wednesday: “So, we just got our in-principle approval for our AMC (MF) license. I guess now comes the hard part.”, as per an IANS report.
Zerodha Mutual Fund License
- The company had applied for an AMC (Mutual fund) license in February last year.
- “To grow the capital market participation from the current 1.5 crores and address those who currently don’t invest (Millenials), we think mutual fund as a product needs to be reimagined. So yeah, we have just applied for an AMC (Mutual fund) license,” Kamath had said in a tweet last year.
- The brokerage house has joined entities like Samco Securities and Bajaj Finserv that received SEBI’s go-ahead to launch mutual fund operations, as per PTI report.
- The approval came after the Securities and Exchange Board of India (Sebi) had allowed fintech firms to enter the mutual fund business, PTI reported.
- Besides, companies including Frontline Capital Services, Wizemarkets Analytics, Unifi Capital, Alchemy Capital Management and Helios Capital Management Pte Ltd are also eyeing an entry into the MF space, according to a PTI report.
- These companies have already approached Sebi for a mutual fund licence, PTI reported.
- At present, 44-mutual fund houses manage assets to the tune of over Rs 35 lakh crore, as per PTI report.
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