Edelweiss gets Sebi nod to launch AMC biz

Written by Markets Bureau | Mumbai, May 5 | Updated: May 6 2008, 06:28am hrs
The Securities & Exchange Board of India (Sebi) on Monday has cleared the proposal of Edelweiss Capital Ltd, to launch its Asset Management Company (AMC), which will be 35th player in the Mutual Fund (MF) industry.

Registration has been granted to Edelweiss Mutual Fund and approval has been granted for Edelweiss Asset Management Ltd to act as investment manager to Edelweiss Mutual Fund, the company said in a release.

Jimmy A Patel, chief executive officer (CEO), Edelweiss Asset Management Ltd (EAML) said, The Indian mutual fund industry has been growing at a rapid pace of 47% year-on-year over the last five years. However, current penetration levels are just 3-4%, clearly indicating the vast untapped potential. We believe this time is right for us to enter the market by offering innovative customer-specific solutions across the range of debt, arbitrage and equity products.

EAML plans to launch 8-9 products over the next 12 months. The product portfolio will include broad based equity funds, structured products, arbitrage funds, ETFs, and other innovative fixed income and equity funds in line with requirements of the market.

Rashesh Shah, chairman, Edelweiss Group said, The plan to launch a mutual fund is in keeping with our long term strategy of building a diversified financial services company offering products and services across asset classes. Our vision is to become an innovative and universally renowned asset manager providing excellent investment solutions, exemplary services and setting the highest ethical standards.

Edelweiss Capital Ltd is one of India's fastest growing diversified financial services companies. The group's services include investment banking, institutional equities, private client broking, asset management, wealth management, insurance broking, wholesale financing and mutual funds.