Sebi okays Lotus India AMC’s MF foray

NEW DELHI: Market regulator Sebi on Monday approved Lotus India Asset Management Company Pvt Ltd to start its mutual fund operations in India.

The fund house is a joint venture between Fullerton Fund Management Group, a wholly-owned subsidiary of the Temasek Holding Pvt Ltd and Sabre Capital Worldwide.

An affiliate of Fullerton, Alexendra Fund Management is a sponsor of Lotus India AMC, the fund house said in a release.

Speaking on the occasion, the newly appointed CEO of the fund house Ajay Bagga said: "we have already invested in a scale that will allow us to rapidly build this business towards our objective of Rs 25,000 crore asset under management within first year of operation".

He said, over the next few quarters the mutual fund is targeting a presence in 100 cities and a distribution footprints that ranks among the top five AMCs in India.

Given the growth in the mutual fund industry of 61 per cent over the last year, and 36 per cent over the last three years, coupled with a penetration less than 2 per cent of household, the industry offer strong growth potential in the country, said Lotus India AMC, chairman Rana Talwar.