Broking firm Zerodha has received in-principle approval from capital markets regulator Sebi to set up an asset management company, its founder and CEO Nithin Kamath said on Wednesday.
"So, we just got our in-principle approval for our AMC (MF) license. I guess now comes the hard part," Kamath tweeted.
In February last year, Zerodha had applied for a licence to start mutual fund operations.
The brokerage house has joined entities like Samco Securities and Bajaj Finserv that received Sebi's go-ahead to launch mutual fund operations.
The approval came after the Securities and Exchange Board of India (Sebi) had allowed fintech firms to enter the mutual fund business.
Besides, companies including Frontline Capital Services, Wizemarkets Analytics, Unifi Capital, Alchemy Capital Management and Helios Capital Management Pte Ltd are also eyeing an entry into the MF space. These companies have already approached Sebi for a mutual fund licence.
At present, 44-mutual fund houses manage assets to the tune of over Rs 35 lakh crore.
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