This is the first clearance under the 'green channel' route, a speedier approval mechanism put in place by the CCI.
Essel Group is facing a cash crunch and is looking to sell most of its assets to reduce debt on its books.
"A term sheet has been signed between both the parties so far which is a part of due diligence process," a source told Moneycontrol.
After the recent default at IL&FS, which hit liquid schemes, fund houses are now looking at overnight funds, which are less risky than liquid funds
The open-ended dynamic asset allocation fund will deploy at least 65 percent of its assets in equity and equity-related securities including hedged derivatives
The open-ended equity scheme will invest at least 65 percent of its assets in maximum 30 stocks focusing in multicap category
As per SEBI norms, all open-ended and debt-oriented schemes must maintain a minimum of Rs 20 crore worth of assets under management at all times
The scheme will invest at least 65 percent of its corpus in large, mid and small-cap stocks, while the rest will be invested in bonds and money market securities
The fund house is betting big on fast moving consumer goods, information technology sectors
This is the first offering from Essel Mutual Fund after it acquired Peerless Mutual Fund in November, last year
Earlier in August, Essel Finance had got the Securities and Exchange Board of India's approval to acquire Peerless Funds Management