Britain''s Dawnay Day gets SEBI''s in-principle nod for mutual fund
30 October 2006
UK-based
financial and real estate major, Dawnay Day International
Ltd (DDI), has got an in principle approval from the
Securities and Exchange Board of India (SEBI) to set
up a mutual fund business in the
country.
DDI's plans for India include, besides the mutual fund, a retail stock broking business, a portfolio and wealth management business and an India-dedicated fund for investments in the domestic equity market. The group also plans to invest $50 million initially -later going up to $200 million — in the rapidly growing real estate and hospitality sectors.
DDI has tied up with Indian investment banker Alok Vajpeyi, to set up Dawnay Day AV Financial Services, to manage its operations in India. The new venture, which has already got a portfolio management service licence from SEBI, plans to have 20 retail outlets initially. It already employs about 250 finance professionals and has a presence in four cities.
DDI, which already has a foreign institutional investor registration, also plans to raise up to $100 million for an India-dedicated fund. The new mutual fund aims to build up assets of over Rs5,000 crore in about three years.
India's buoyant mutual fund sector — with about 30 asset management companies (AMCs) actively managing funds — has attracted several international majors, but many more have plans to set up mutual funds over the coming months. About 15 more AMCs are expected to be floated shortly.
Credit Suisse group of Zurich, Rabobank and Aegon of the Netherlands and AXA of France are the European financial majors that plan to float mutual funds in India. Goldman Sachs is