Essel Finance signs MoU with Srei for sale of mutual fund business

Srei already runs an infrastructure debt fund, which invests in infrastructure-related projects

The financial services arm of the debt-ridden Essel group — Essel Finance — has signed a memorandum of understanding (MoU) with Srei for the sale of its mutual fund (MF) business, as the latter seeks entry into the Rs 23-trillion industry.  

“We have signed an MoU with Srei and they are doing their due diligence. They need approval from the Securities and Exchange Board of India (Sebi) clearing them as ‘fit and proper’ to sponsor an MF. The process could take 2-3 months,” said Amitabh Chaturvedi, managing director of Essel Finance. 

A spokesperson for Srei Mutual Fund Asset Management