India: Yes Bank gets regulatory nod to start AMC business

Private sector lender Yes Bank Ltd on Wednesday said it has got an in-principle approval from capital markets regulator Securities and Exchange Board of India or Sebi to get into the asset management and mutual funds business in India.

“Yes Bank receives in-principle approval from Sebi for setting up of Mutual Fund, Asset Management and Trustee Co,” the bank said in a filing on stock exchanges.

In October 2015, the Reserve Bank of India (RBI) had given a go-ahead to Yes Bank to set up a mutual fund, asset management company (AMC) and a trustee company.

Once Yes Bank secures Sebi’s final approval, it will become the 44th mutual fund company in the country, provided the bank chooses to launch its own MF business rather than acquiring the MF assets of any other existing fund house.

During 2015, the bank was indeed in talks with some of the existing AMCs to acquire their MF assets and get a ready-made portfolio to start AMC operations.

According to a Mint report on 15 January 2015, Yes Bank managing director and chief executive officer Rana Kapoor had confirmed that the bank was open to acquiring an asset management business, but declined to disclose names, citing confidentiality agreements.

The Mint report had mentioned that Yes Bank was in talks with at least three AMCs to establish a mutual fund business in India and Deutsche Mutual Fund was one of them.

According to industry lobby group Association of Mutual Funds in India (Amfi), for the quarter ended 30 June, the industry had average assets under management worthRs.14.4 trillion.

When it got RBI’s nod in October, the lender had said in an exchange filing that its AMC will channelize savings of retail and institutional investors in equity and debt capital markets. “This will complement Yes Bank’s retail liabilities strategy and also allow the AMC to leverage the Bank’s distribution network for customer acquisition,” Yes Bank had said.

Also read:

India: Yes Bank hires Goldman Sachs for $1b QIP

India: Private sector lender Yes Bank to raise $247m

This story was first published on Livemint

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.