SEBI clears Pioneer's 51 per cent stake in BoB Mutual

Mumbai: The Securities and Exchange Board of India (SEBI) has cleared the  acquisition of majority stake in Bank of Baroda (BOB) Mutual Fund by Pioneer Global asset Management (Pioneer Investment), an asset management company run by Italian bank UniCredit.

Pioneer Investments, which will be a co-sponsor of the fund, has acquired a majority 51 per cent stake in the BoB asset management company.

The joint venture will be renamed `Baroda Pioneer Asset Management Company Limited', with Pioneer Investments gaining management control and BoB holding 49 per cent in the AMC.

The joint venture hopes to leverage the investment management skills of Pioneer Investments and Bank of Baroda`s nation-wide network of branches.

The board of directors of the AMC will be reconstituted with nominees from Pioneer Investments and Bank of Baroda as well as some independent directors.

The schemes of the mutual fund would, however, continue to be governed by their respective existing offer documents.