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This article is more than 1 month old.

Zerodha gets Sebi nod to launch mutual fund business

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Zerodha had applied for an AMC licence in February 2020.

Zerodha gets Sebi nod to launch mutual fund business

Zerodha Broking has received in-principle approval from market regulator Securities and Exchange Board of India (Sebi) to set up an asset management company (AMC).

"So, we just got our in-principle approval for our AMC (mutual fund) license. I guess now comes the hard part," Zerodha founder and chief executive officer Nithin Kamath said in a tweet on Wednesday.

The brokerage had applied for an AMC licence in February 2020, just before the coronavirus pandemic.

At that time, Kamath had tweeted: “To grow the capital market participation from the current 1.5 crores and address those who currently don't invest (millennials), we think mutual fund as a product needs to be reimagined. So yeah, we have just applied for an AMC (Mutual fund) license."

Within just a decade since its launch, Zerodha has become the country's largest brokerage in terms of user base.

Zerodha claims to handle four million trades a day on exchanges. The company has launched a platform, Coin, to help retail investors invest in mutual fund schemes.

Currently, Coin has Rs 5,500 crore in assets under management, according to the brokerage.

In the past few months, Sebi has allowed Bajaj Finserv, NJ India and Samco Securities to set up shop in the mutual fund industry, which is estimated to be worth Rs 35 lakh crore.

Several other companies, including Alchemy Capital Management, Helios Capital Management and Unifi Capital Private, are also waiting to received in-principle nod from Sebi to foray into the MF industry.

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