Fidelity gets nod for local mutual fund operations

Fidelity Investments, a global financial services major based in the US, has received an in-principle approval from the Securities and Exchange Board of India (Sebi), to commence mutual fund business in the country. With over $1 trillion in assets under management worldwide, Fidelity fund operations are the world's largest.

Ashu Suyash, head of Fidelity's Indian arm, confirmed the development. She said, "We have recently received an in-principle approval from the markets regulator. But there are still a number of steps to go through, and approvals to get, before we can commence business. We are yet to get the final registration."

Last year Richard Wastcoat, Fidelity's managing director, had announced the financial company's intentions of setting up operations in India.

Fidelity has managed to be one of the few fund houses in the US not to be tainted by the slew of trading scandals that had hit the US fund industry.

The company's bottom line rose 12.3 per cent rise to $907.5 million in 2003. Between September last year and April this year, it gained $34 billion in assets (excluding money market schemes), which forms 15.4 per cent of the total fund assets in the US.