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Shriram Asset Management Company (AMC) has been authorised by its shareholders to issue further capital of Rs 10 crore by way of private placement. The decision was taken in the company's annual general meeting (AGM).
The decision is line with new norms for net worth requirement by the capital market regulator. According to new set of norms released by the capital market regulator the Securities and Exchange Board of India, AMCs need to have a net worth of Rs 50 crore. Last year, Sebi increased this limit from Rs 10 crore.
Market participants had advised to take it up to Rs 25 crore. However, Sebi took a stand that it does not want non-serious players to be in the fund management business.
D Ramanathan, head (Sales & Marketing) at Shriram AMC, said: "The AMC business is of strategic importance to the group. We have long term commitment to nurture and attain leadership position in the next 5 years. We would launch differentiated products that would complement investor's portfolio."
Currently, there are over 40 AMCs in the mutual fund business managing an assets worth Rs 13 lakh crore.
