Shares of Yes Bank were seen trading higher after the bank received an approval from the Reserve Bank of India to sponsor a Mutual Fund and to set up an Asset management Company (AMC) and a trustee company.
The AMC and the trustee companies shall be set up as wholly owned subsidiaries of YES Bank.
The company will now apply to Securities and Exchange Board of India (SEBI) to seek necessary approvals.
The AMC will channelize the savings of retail and institutional investors in equity and debt capital markets. The AMC will also gain from the banks's expertise in investment advisory and wealth management etc to build a large and profitable Fund management franchise.
Shares of the bank were seen trading at Rs 730, higher by 0.74 per cent on BSE. It touched an intra-day high of Rs 736 during the trade.