The capital markets regulator Securities and Exchange Board of India (Sebi) is contemplating a proposal to allow private equity funds to own asset management companies (AMCs), reported The Economic Times.
The regulator is also examining whether to allow loss-making sponsors to invest in mutual fund businesses provided they fulfil the fit-and-proper criteria. This move could allow fintech companies to enter the asset management business, said analysts.
If a private equity fund has a net worth of ₹150 crore and is able to establish the ultimate beneficiary, it would be able to invest in AMCs in India, said two people familiar with the development.
IIn April, the regulator had set up a working group to review the eligibility criteria for the sponsor of a mutual fund to facilitate growth and innovation.
The expert panel recently submitted its report to the regulator. These proposals were also discussed by the mutual fund advisory committee.
The panel has also proposed a lock-in period of three to five years for private equity funds willing to act as sponsors of mutual funds.