Non-banking finance company SREI Infrastructure today said it has got in-principle approval from the Securities & Exchange Board of India (Sebi) to launch its mutual fund business in the country.
The company would be incorporating two wholly-owned subsidiaries for carrying out the asset management business.
"Pursuant to an in-principle approval received by the company from the Sebi for setting up a mutual fund, the board has decided to incorporate two wholly owned subsidiary companies for carrying out the activities of asset or fund management and trusteeship services," SREI Infrastructure said in a filing to the Bombay Stock Exchange.
Besides, the board has approved the resignation of Somabrata Mandal as the Director of the Company with effect from September 12.
Earlier this month, Axis Asset Management Company (Axis AMC), a wholly owned subsidiary of Axis Bank Ltd, had received the final regulatory approval from the Sebi to launch its mutual fund business in the country.
Shares of SREI Infra were trading at Rs 75.30, up 4.37 per cent in late afternoon trade on the BSE.