Zerodha gets approval from Sebi to start mutual fund business

Zerodha gets approval from Sebi to start mutual fund business

Zerodha, India's largest broking firm, has got preliminary authorisation to establish an asset management company (AMC). With this, the cheap brokerage joins the likes of Samco Securities and Bajaj Finserv in obtaining the approval of market regulator Sebi for a mutual fund (MF). The Sebi's in-principle approval will allow the Bengaluru-based startup to launch its own mutual funds (MFs), according to founder and CEO Nithin Kamath, who tweeted on Wednesday. The broking firm applied for the AMC licence in February 2020. Bajaj Finserv received in-principle approval from Sebi last week to open a branch in the Rs 35-trillion Mutual Fund (MF) industry. The Indian MF industry has seen a significant increase in assets as well as investor participation, attracting more into the money management business. In the last few months, the Indian MF industry has seen the entry of new players such as NJ India and Samco Securities. Currently, 44 mutual fund houses manage assets worth over Rs 35 lakh crore. According to Sebi, as of June, there were approximately five entities awaiting in-principle approval. Among the participants are Alchemy Capital Management, Helios Capital Management, and Unifi Capital Private Limited.