Dutch financial services group Aegon has closed its asset management business in India and got its mutual fund registration cancelled by market regulator Securities and Exchange Board of India.
SEBI has, at the company's request, withdrawn the approval granted to Aegon Asset Management Company Pvt Ltd to act as asset management company.
Aegon has surrendered its mutual fund licence as it was facing a string of regulatory restrictions, company sources said.
Consequently, with immediate effect, Aegon Mutual Fund, Aegon Trustee Company Pvt Ltd and Aegon Asset Management Company Pvt Ltd cannot carry out any activity as a mutual fund, trustee company and asset management company, respectively, a SEBI release said.
While it is perhaps the first time a mutual fund is seeking cancellation of its registration, Aegon itself does not consider asset management business as a 'strategic fit' for its growth plans in India.
Aegon, which is into life insurance, pension and investment, has an insurance joint venture with Ranbaxy group financial services company Religare and media house Bennett, Coleman & Company.
Aegon, based in The Hague, the Netherlands. has businesses in over twenty markets in the Americas, Europe and Asia. Aegon group employs approximately 28,000 people and serve some 40 million customers across the globe.