As many as 23 firms are awaiting approval from the market regulator SEBI to enter into mutual fund space, which is already overcrowded with 37 players managing assets over Rs seven lakh crore.
Companies have filed for regulatory approvals, which are being processed by SEBI, sources said.
Some of the Indian companies whose applications are with the market regulator include India Bulls Ltd, Future Finance Ltd, SREI Infrastructure Finance Ltd and ASK Investment Holdings Pvt Ltd.
Besides, brokerage entities like India Infoline, Prime Securities Ltd, Karvy Stock Broking Ltd and Jaypee Capital Services Ltd have also sought licences from SEBI for asset management.
Two state-run banks — Union Bank of India and IDBI Bank — are also planning to venture into the asset management space and have approached the regulatory authority.
While IDBI Bank had filed application for licence in June last year, Union Bank had submitted its papers in February 2009.
Meanwhile, the country's third largest private sector lender Axis Bank has already got the regulator's approval to start asset management business.
The Union Bank has set up an asset management firm with KBC Group of Belgium. The joint venture, in which the PSB owns 51 per cent stake, expects to start operations during the current fiscal.