The country’s largest discount broker, Zerodha, recently gained an in-principle approval from the Securities and Exchange Board of India (SEBI) to initiate setting up an Asset Management Company (AMC). The brokerage firm got the green signal from the market regulator SEBI, almost one and a half years after Nithin Kamath, the founder of Zerodha, applied for a license regarding his mutual fund business in February 2020.
Nithin took to Twitter to make the announcement of the feat achieved by his company. Sharing a tweet from February 2020, where he talked about the reimagining of mutual funds as a product and declared that he has applied for an AMC license, he wrote, “So we just got our in-principle approval from SEBI for our AMC (MF) license. I guess now comes the hard part.”
https://twitter.com/Nithin0dha/status/1433061564865646592?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1433061564865646592%7Ctwgr%5E%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fwww.moneycontrol.com%2Fnews%2Fbusiness%2Fpersonal-finance%2Fzerodha-gets-in-principle-approval-for-amc-mutual-fund-says-nithin-kamath-7404241.html
Nithin had applied for the license in February and aimed at expanding the market penetration in India. “We need to make the industry grow per se. We will have new products in the Mutual Fund (MF) and Exchange-traded Funds (ETF) spaces, which are non-existent,” Nithin told Economic Times.
With the license in hand, Zerodha will focus on the millennials who tread too prudently on the path of investments in mutual funds and grow the capital market participation from the current 1.5 crores, according to the tweet Nithin posted in February 2020. In August, Bajaj Finserv received similar approval from SEBI to develop a space of their own in the Rs. 35 trillion Mutual Fund (MF) industry.
Zerodha was launched by the brother-duo in 2010 and gained exponential popularity as a low-cost player among all kinds of traders. As of now, the firm handles roughly seven million trades in a day on the exchanges. In addition, Zerodha’s platform ‘Coin’ has attracted numerous traders, and the platform manages assets of more than 15,000 crores.
With his brother Nikhil Kamath, who is the co-founder of Zerodha, Nithin started the first-in-the-market Alternative Investment Fund (AIF) in GIFT city of Gujarat called True Beacon Global. According to Nithin, the company beat the Nifty50 index by 32.3% in the year 2020.
With Zerodha entering the Mutual Fund realm, India now has roughly 41 mutual funds for the Indian investors.
Read all minute-by-minute news updates for Uttar Pradesh election results 2022, Punjab election results 2022, Uttarakhand election results 2022, Manipur election results 2022, and Goa election results 2022.
Click here for seat-wise LIVE result updates.
Comments
0 comment