Reliance Cap sets up arm in Singapore

In the first instance of an Indian asset management company going global, the Anil Ambani-owned Reliance Capital has set up a wholly owned subsidiary in Singapore as a part of its plans to invest in global assets.

The subsidiary is raising its initial corpus of $100 million from institutional investors.

While UTI, the only other prominent wholly Indian-owned mutual fund, has a subsidiary in Dubai, its investment focus is primarily India. Reliance Capital, on the other hand, has drawn up plans to manage global assets over the next two to three years.

Reliance Capital's mutual fund business is the country's largest with close to Rs 47,665 crore assets under management.

Reliance Capital has a presence in the life and general insurance, private equity and asset reconstruction businesses

A source close to the development said, "This is the first step towards establishing a global asset management business. Over the next 2 to 3 years, the company can be expected to invest in assets across the world."

The first fund will, however, invest in Indian assets.

"The first fund will be an India focussed fund and will invest across sectors in India," sources said. Reliance executives, however, declined to comment.

The company has received approvals from the Sebi and the Monetary Authority of Singapore to set up the fund.