Yes Bank gets Sebi nod to launch MF business

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New Delhi | Published: July 5, 2018 2:38:53 AM

Private sector lender Yes Bank on Wednesday said it has received approval from capital markets regulator Securities and Exchange Board of India (Sebi) to start a mutual fund business.

yes bank, sebiIn its 2017-18 annual report, Yes Bank had said it has incorporated Yes Asset Management (India) Limited on April 21, 2017 and Yes Trustee Limited on May 03, 2017 as wholly owned subsidiaries for the proposed mutual fund business. It had said that the final approval from Sebi for the mutual fund is awaited.

Private sector lender Yes Bank on Wednesday said it has received approval from capital markets regulator Securities and Exchange Board of India (Sebi) to start a mutual fund business.

This approval is subsequent to the Reserve Bank of India’s (RBI) approval granted to Yes Bank to sponsor a mutual fund followed by Sebi’s in-principle approval received subsequently, the bank said in a statement.

“Yes Asset Management (India) Limited (YAMIL) will leverage Yes Bank’s Knowledge Banking expertise and relationship capital across retail, corporate and institutional investors to effectively channelise their assets in equity and debt capital markets,” the bank’s managing director and chief executive officer Rana Kapoor said.

This strategic initiative will further complement Yes Bank’s retail liabilities and wealth management strategy, and also allow YAMIL to build on the bank’s distribution network to provide customers a seamless investment and banking experience, Kapoor said.

The lender said it has recruited a team to establish the operations under the guidance of the Board of Directors and trustees. Yes Asset Management will launch fund offerings across the spectrum of both debt and equity markets over the next 6-12 months.

In its 2017-18 annual report, Yes Bank had said it has incorporated Yes Asset Management (India) Limited on April 21, 2017 and Yes Trustee Limited on May 03, 2017 as wholly owned subsidiaries for the proposed mutual fund business. It had said that the final approval from Sebi for the mutual fund is awaited.

“YTL will be the legal owner of the property of the Mutual Fund (with the beneficial ownership vesting in the unit holders of the Mutual Fund) and will hold the same in trust for the benefit of the unit holders of the Mutual Fund.

YAMIL has been appointed as the Investment Manager of the Mutual Fund by the YTL vide duly signed and executed Investment Management Agreement between them,” the bank had said.

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