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Cholamandalam, CFM
head for a split
Our Markets Bureau
Mumbai, April 16: THE financial arm of the Rs 3,700 crore
Murugappa Group — Cholamandalam Investment and Finance Company Ltd
(CIFC) and Cazenove Fund Management Ltd (CFM), UK have mutually
decided to withdraw from their joint venture Cholamandalam Cazenove
AMC Ltd (CCAMC).
| ...forms working group for pension sector reforms |
Mukta Malhotra
Mumbai, April 16: AMFI has formed a working group to go
through the details of the pension sector reforms with the Insurance
Regulatory and Development Authority (Irda).
The working group would be headed by Amfi chairman, AP Kurian.
Speaking to The Financial Express, Mr Kurian said, “The working
group would discuss the modalities of the Pension Fund.
“The whole industry is very enthusiastic to launch the Pension
Fund.”
The members of group include UTI executive director SK Basu,
IDBI Principal Asset Management managing director Sanjay Sachdev,
Sun F&C Asset Management chief executive officer Nikhil
Khattau.
At a recent meeting on April 9, Irda chairman N Rangachary met
Mr Kurian and heads of seven mutual fund to discuss the pension
fund reforms. Amfi had agreed to the Old Age Social and Income
Security (OASIS) Committee recommendation that investment managers
should have a minimum networth of Rs 25 crore as against Rs
10 crore.
It also put forth a suggestion that more than six Sebi registered
AMCs should be allowed to launch the schemes. |
Speaking to The Financial Express, Cholamandalam Cazenove AMC chief
executive Ved Prakash Chaturvedi said, “India is clearly a big playing
ground for mutual funds. We see ourselves becoming a leading player
in this industry.”
The decision has been arrived after a review by both the groups
of their business portfolios. Based on these extensive reviews,
the groups have reached the conclusion that the overall business
interests of the AMC, as well as that of the two groups, would be
better served if they pursue their strategies independently.
onsequently, Cholamandalam will be buying out Cazenove’s 49 per
cent stake in CCAMC.
There is a general feeling in the market that the JV was called
off as Cholamandalam is looking to tie up with a bigger player.
Cholamandalam & its associates, however, have also made their
intentions to tie with another international group very clear. In
a press release, it has said that the group is in the process of
identifying another international group of significant standing
for the AMC.
As of date, CCAMC is well established and is poised to accelerate
its pace of growth. Assets under management are in excess of Rs
675 crore.
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