IDBI Asset Management, the mutual fund subsidiary of IDBI Bank, has received Securities and Exchange Board of Indiaís (Sebi) approval to start advisory business, which it plans to launch before the end of the fiscal.
Under the new business, the company will provide advisory services to insurance companies, pension funds managers and overseas funds managers.
The launch is seen as a way for the asset management company to diversify at a time when the core mutual fund business is sluggish.
ďWe are planning to launch advisory business by this fiscal year. Preliminary works on starting the new business will complete within the next two to three months,Ē IDBI Asset Management managing director and chief executive officer Debasish Mallick told FE.
India's mutual fund industryís asset under management (AUM) fell by more than 6% at the end of July month-on-month due to a huge outflows from liquid funds, which pushed total AUMs below the R8 lakh-crore mark for the first time since March.
At present IDBI Asset Management has 1,18,000 retail customers of a total customer base of about 1,20,000. Its AUM stood at R5,587 crore as on June 30, 2013.