CCI clears Edelweiss' purchase of JP Morgan's mutual fund business in India

NEW DELHI: Financial services firm Edelweiss has received fair trade regulator CCI's approval to acquire mutual fund business of JP Morgan in India.

The transaction, announced in March, marks the exit of another foreign fund house from the over Rs 13 lakh crore domestic mutual fund industry. In the past few years, a number of other global players have exited the Indian MF business.

Competition Commission of India (CCI), which keeps a tab on unfair business practices, has cleared the deal, as per the regulator's website.

Under the deal, Edelweiss would acquire all onshore fund schemes managed by JP Morgan Asset Management in India including its country-based onshore mutual fund business and the international fund of funds, Edelweiss had said in March.

According to the scheme transfer agreement, the right to manage the JP Morgan MF schemes will be transferred by JP Morgan AMC to Edelweiss AMC, and the sponsorship of the JP Morgan MF Schemes will be transferred by JP Morgan Sponsor to Edelweiss Sponsor.

Besides, Edelweiss Trustee will take over the trusteeship of the JP Morgan MF Schemes from JP Morgan Trustee.

JP Morgan had entered into the Indian mutual funds business in 2007. Last year, JP Morgan MF got into trouble due to its exposure to debt securities of Amtek Auto.