Emkay Global Financial Services, like Angel One, Zerodha Broking, and Helios Capital Management, has received in-principle clearance from India’s capital markets regulator to begin a mutual fund company.
Emkay Global Financial Services said in a regulatory announcement that the Securities and Exchange Board of India (Sebi) approved the transaction on March 31.
Bajaj Finserv, a diversified financial services firm, acquired final registration from Sebi in March to begin its mutual fund operations under the name Bajaj Finserv Mutual Fund.
Prior to Emkay Global, Angel One (previously known as Angel Broking) gained in-principle permission in February to sponsor a mutual fund.
The mutual fund licences for Nithin Kamath’s Zerodha Broking, Samir Arora’s Helios Capital Management, and Kenneth Andrade’s Old Bridge Capital Management are still pending.
According to the Sebi website, four organisations are being considered for in-principle approval: Unifi Capital, Alpha Alternatives, Abira Securities, and Wizemarkets Analytics.
Zerodha, a stock trading service, and Smallcase, a wealth management business, have announced a joint venture to develop an asset management company (AMC) focused on passive mutual funds.
Zerodha Broking obtained in-principle clearance from the markets regulator to establish an AMC in September 2021.
The joint venture has received approval, but the watchdog is still examining Zerodha’s clearance for final registration.
“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.
Smallcase, according to Nithin, would assist Zerodha in developing simple, low-cost passive mutual fund products.
The mutual fund market in India is a competitive one, with over 40 companies competing for Rs 40 trillion in assets under management (AUM).