Shriram Group approaches Sebi to launch new mutual fund scheme

The fund will be open-ended, where an investor's money will not be subject to a lock-in

Shriram Group has filed draft documents with the market regulator Sebi to launch mutual fund scheme as part of the Chennai-based conglomerate's efforts to revive its defunct MF business.

Shriram AMC, the only listed asset management company in the country, had mutual fund schemes way back in the 90s which the company decided to eventually wind up due to lack of interest from investors.

According to the scheme information document filed with Securities and Exchange Board of India (Sebi) on July 16, the Group has approached the regulator to launch mutual fund scheme.

The Shriram Balanced Fund would invest in debt and equities. The fund would be open-ended, where an investor's money would not be subject to a lock-in.

The fund would allocate a minimum of 65% and a maximum of 100% in equities, while debt holdings could vary between zero and 35%, the documents noted.

The group, which entered into mutual fund business by incorporating Shriram Asset Management Company in July 1994, had last year decided to approach Sebi for its permission to launch new schemes.

The company had wound up all its schemes, as per its annual report for the financial year ended March 31, 2012.

The move is part of the company's plan to reactivate its mutual fund operations.

Currently, there are 44 funds, including foreign funds operating in the country, together offering over 740 mutual fund schemes.

Besides, Shriram Group firm Shriram Capital, which is the holding company of all its financial services, has also applied for a banking licence.