Private sector lender Yes Bank Tuesday announced its foray in the mutual fund business with the final approval from the capital markets regulator Securities and Exchange Board of India (SEBI). In a filing to the stock exchanges, Yes Bank said that it fully-owned asset management arm – Yes Asset Management – had obtained final approval from SEBI to launch two mutual fund schemes -Yes Liquid Fund and Yes Ultra Short Term Fund.
Shares of the company rose as much as 2% on the BSE soon after the announcement on Tuesday. After touching an intra-day high of Rs 182.50 a share and an intra-day low of Rs 175.10 a share, shares of the company closed the day at Rs 175.10, down 0.81% from the previous close on BSE.
Also Read: Yes Bank appoints ex-IRDA chief TS Vijayan as additional director
With this, Yes Asset Management (India) becomes the latest Indian company to mark the presence in the mutual fund segment. Currently, there are approximately 40 mutual fund houses operating in the country.
Earlier, the private sector lender had obtained approval from the Reserve Bank of India (RBI). Yes Asset Management had received the approval from SEBI to commence mutual fund business in July this year.
Meanwhile, the private sector lender has appointed T S Vijayan, former IRDA chairman, as an additional director for a term of five years with immediate effect. The bank, which is grappling with governance as well as non-performing asset issues, saw three resignations in the recent past of three independent directors, including non-executive chairman Ashok Chawla.
Vijayan is also part of the panel to appoint a successor to chief executive officer Rana Kapoor.