Leading private sector lender, Yes Bank has said that it has received in principle approval from SEBI for setting up of Mutual Fund, Asset Management and Trustee Co.
"The Bank has received an in-principle approval from the Securities & Exchange Board of India (SEBI) to sponsor a mutual fund and to setup an asset management company (AMC), and a trustee company. The AMC and the Trust Company shall be set up as wholly owned subsidiaries of Yes Bank," the fifth largest private sector lender said in a filing to the Bombay Stock Exchange.
The bank, which already received approval from the Reserve Bank of India (RBI) in October 2015, will commence operations of this business within 12 months.
"The asset management company (AMC) will channelise the savings of retail, corporate and institutional investors in equity and debt capital markets by leveraging bank's knowledge banking expertise," the bank said.
Meanwhile, shares of the bank were trading at Rs 1187.05 apiece, down 1.10 per cent from the previous close at 09:50 hours on BSE.