India Infoline to start MF operations in Q1 FY11: Chairman

MUMBAI: Financial services firm, India Infoline, plans to set up its mutual funds operations in the first quarter of FY11, after securing the final approval from Sebi, its Chairman said.

"We have received the in-principle approval from Sebi (to set up the asset management company). The final approval is expected in the next 2-3 months," India IIFL, Chairman, Nirmal Jain told reporters here.

IIFL plans to start AMC operations on its own but may also look at the option of partnering with any existing players in the future, Jain said.

Presently, IIFL has operations in equity and derivative brokerage and investment management amongst others. The company is operating from 1,500 locations.

It plans to increase the current branch strength, around 500 by 25-30 per cent over the next one year, while the number of franchises, now at 1,000, will be doubled during the period.

Commenting on its mortgage business, Jain said that the company has grown its mortgage business to a loanbook size of Rs 600-crore.

"We now have a loanbook of Rs 600-crore. We are currently offering the loan products from 20 centres, which would be scaled to 40 over the next 3-4 months," Jain said.