DLF Pramerica gets Sebi nod to start MF ops

DLF Pramerica Mutual Fund, the joint venture between Prudential Financial Inc (PFI) of the United States and real estate company DLF, has got "in-principle" approval from the Securities and Exchange Board of India (Sebi), to start asset management operations in India.

DLF Pramerica Mutual Fund is a sub-brand under the umbrella brand of DLF Pramerica. Pramerica is the brand name used by PFI in India and select countries outside the United States.

In December 2007, PFI and the LF Group had announced their plans to establish as asset management JV in India, subject to regulatory approval.

Under the terms of the agreement, PFI will be the majority shareholder in the JV with 61 per cent interest, while DLF will own the remaining 39 per cent. The partners will invest $45 million over the next few years in this company.

The planned JV will be based in Mumbai and will provide a full range of mutual fund and investment products, including domestic and eventually international mutual funds, to Indian retail and institutional clients.

DLF Pramerica Asset Managers will use PFI’s distinctive “Rock” brand, symbolizing the company’s strength and stability, combined with DLF’s brand that stands for solid, time-tested credibility.