Groww, an online broking firm, has received approval from the market regulator Securities and Exchange Board of India (SEBI) to launch its first index fund, reported Business Line.
The company will launch the Groww Nifty Total Markets Index Fund through a new fund offering (NFO).
“Groww Mutual Fund got approval for its first NFO — Groww Nifty Total Market Index Fund,” tweeted Groww’s cofounder Lalit Keshre on Twitter.
This comes at a time when online stock broking firm Zerodha launched two new schemes – Zerodha Tax Saver (ELSS) Nifty Large Midcap 250 Index Fund and Zerodha Nifty Large Midcap 250 Index Fund (ZN250) – under its mutual fund business, Zerodha Asset Management Ltd.
In 2021, Groww got the approval of the Competition Commission of India (CCI) to acquire Indiabulls Asset Management Company (AMC) and Indiabulls Trustee Company. In May 2023, Groww acquired a 100 per cent stake in the MF business of Indiabulls Housing Finance for ₹175.62 crore in an all cash deal.
In the same month, SEBI took steps to regulate online investment platforms, including Paytm, Zerodha and Groww, that facilitate transactions in direct plans for MF schemes referred to as execution only platforms (EOPs). Founded in 2017 by Lalit Keshre, Harsh Jain, Neeraj Singh and Ishan Bansal, Groww offers stockbroking, and direct mutual funds.
The company has raised a total funding of $393 million over eight rounds, according to data by Tracxn.
