Emkay Global Financial Services has joined the likes of Angel One, Zerodha Broking and Helios Capital Management in getting an in-principle approval from the capital markets regulator to launch mutual fund business in India.
In a regulatory notification, Emkay Global Financial Services said the Securities and Exchange Board of India (Sebi) had given the go-ahead on March 31.
Bajaj Finserv, a diversified financial services group, had in March received the final registration from Sebi to kick off its mutual fund operations under Bajaj Finserv Mutual Fund.
Before Emkay Global, Angel One (formerly known as Angel Broking) had received the in-principle approval for sponsoring a mutual fund in February.
Nithin Kamath-led Zerodha Broking, Samir Arora-founded Helios Capital Management, and Kenneth Andrade’s Old Bridge Capital Management are waiting for their final mutual fund licences.
As per the Sebi website, the in-principle approval is under consideration of four entities - Unifi Capital, Alpha Alternatives, Abira Securities and Wizemarkets Analytics.
Stock brokerage firm Zerodha and wealth management company Smallcase recently announced a joint venture to launch an asset management company (AMC), which will focus on passive mutual funds.
Zerodha Broking had in September 2021 received the in-principle approval from the markets regulator to set up an AMC.
While Zerodha's approval for the final registration is under consideration with the watchdog, the joint venture has got the green light.
“While awaiting the final approval of our AMC (mutual fund), we asked if we should build it ourselves or collaborate. Given the 6+ years of experience that @smallcaseHQ has in building investment products, it made perfect sense to create a joint venture (JV) to build the AMC,” Nithin Kamath, Founder and Chief Executive Officer of Zerodha, tweeted on April 12.
According to Nithin, Smallcase will help Zerodha build simple low-cost passive mutual fund products.
The mutual fund sector in India is a competitive zone with over 40 firms fighting in the Rs 40-trillion assets under management (AUM) industry.