The Hindu Business Line : Dutch Aegon files application to start AMC

DUTCH financial major Aegon has filed its application to start an asset management company and the Securities and Exchange Board of India is currently considering the company's proposal.

Aegon is a euro 2.5-billion group with operations across the US, the UK and the Netherlands. The company's shares are listed on the stock exchanges in Amsterdam, Frankfurt, London, New York, Tokyo and Zurich.

Aegon is also expected to set up its insurance business in the country.

Mr N.K. Sharma, former Chief Executive Officer of IL&FS asset management company (AMC), has joined Aegon and is currently getting the necessary regulatory approvals.

Several other foreign financial majors are also eyeing a piece of the Indian mutual fund pie.

It is understood that with Societe Generale having dipped its toe in the Indian asset management business, with a 37 per cent stake in SBI Mutual Fund, its competitor in France, BNP Paribas, is also considering entering the fund management business in India.

The latter, which cut back its retail banking activity in India, is also understood to be seriously evaluating starting an AMC, though the company is yet to file its application with the market regulator.

BNP Paribas has had several meetings with the industry body, Association of Mutual Funds in India, to discuss the initiation of its asset management company.

To the string of European financial institutions entering this market, the Florida, USA-based Hansberger Global Investors, with $4.6 billion in assets, has also pitched in. It has filed an application with SEBI for setting up its AMC.

The company is partnering a local outfit, Quantum Advisors, which is headed by Mr Ajit Dayal. It is understood that the Indian arm of the AMC would be focussed largely on institutional clients and would not have a retail business in mutual funds.

Other global players who are considering the Indian mutual fund market are Development Bank of Singapore, the Swiss giant UBS and Sabre Capital.

There is also a speculation that AIG is entering the business, as well.

Despite the interest of many of these international giants in participating in the Indian business, the going has not been easy for their predecessors.

Fidelity, the world's largest mutual fund company, is still awaiting final clearance from SEBI, even though they received the in-principle clearance over seven months ago.

The mutual fund business, itself, had a very sluggish year, with assets under management (AUM) growing by less than seven per cent. Total AUM at the end of December 2004 was Rs 1,50,000 crore, up barely by Rs 10,000 crore from the previous year.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Dutch Aegon files application to start AMC

Reliance buys back 6.29 lakh shares

NTPC plans power exchange — In talks with PowerGrid, PTC

`Domestic software market to grow 25 pc this fiscal'

Sensex sheds 112 as FIIs stay off

FIPB defers clearance to ChrysCap's DCB stake plan

ADC cut not enough to tackle ILD grey market: TRAI

Contributions to The Hindu Relief Fund