The Hindu Business Line : Lotus India AMC gets SEBI nod for MF operations

GREEN SIGNAL: Mr Rana Talwar, Chairman (centre), Lotus India AMC, with Mr Gerard Lee (right), Director, and Mr Ajay Bagga, CEO, at a press conference in Mumbai on Monday. - Paul Noronha

Mumbai , July 31

Lotus India Asset Management Company Pvt. Ltd, a joint venture between Fullerton Fund Management Group and Sabre Capital Worldwide, said it had received regulatory approval from the Securities and Exchange Board of India to launch its mutual fund operations in India.

The AMC will initially file for two funds with SEBI.

One fund will be a liquid fund on the institutional side and another will be a Contra for the broader markets.

The AMC plans to employ a focus on retail investors and tap the retail market and is keen on the institutional and corporate side as well.

Mr Rana Talwar, Chairman, Lotus India AMC, said, "The growth in Indian mutual fund assets under management (AUM) is 61 per cent over the last year, 36 per cent over the last three years and coupled with a penetration of less than two per cent of households, we feel that the Indian Mutual Fund industry offers strong growth potential."

The AMC has opened branches across 29 cities in the country with 115 employees and over 4,000 distributor tie-ups at the launch stage.

It plans to increase it to around 8,000 distributors with branches in 100 cities going forward.

It will also tie-up with more than 40 banks for distribution of its products.

"India has a high GDP growth rate along with high corporate governance indicating the huge opportunity that Mutual Funds are exposed to in India.

"The AMC will follow the `Five Pillar Strategy' based on investment philosophy, broad product offering, anywhere-anytime distribution, regulatory compliance and employees being the co-owners of the company," said Mr Ajay Bagga, Chief Executive Officer, Lotus India AMC.

Mr Bagga sees the telecom sector and small and medium enterprise (SME) segment as great sectors for investment.

The AMC has set firm targets for itself. "We have a long-term view for the company where in we plan to venture into the top five AMCs in the country in a span of five year," said Mr Talwar. The company will also look at acquisitions en route on expanding its business if the strategies are in place but declined to comment on the rumours of acquisition of a major AMC in the country.

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