Shriram MF approaches Sebi for first scheme launch in over 10 years

Fund will be open-ended, that is, investor money will not be subject to a lock-in

The Chennai-based Shriram group has filed a draft offer document with the market regulator, Securities and Exchange Board of India, to launch its first mutual fund scheme in over a decade.

The Shriram Balanced Fund will look to invest in debt and equities, according to a notification on the regulator’s website.

It will allocate a minimum of 65 per cent and a maximum of 100 per cent in equities. Its debt holdings could vary between zero and 35 per cent.

The group had first established a mutual fund presence by incorporating its asset management business in July 1994.

The company had wound up all its schemes, according to the company’s annual report in the financial year in March 2012.

Other schemes in the pipeline include the Shriram Dynamic Bond Fund and the Shriram Liquid Fund, according to information included in the latest draft offer document.

Partha Ray has been designated the fund manager for the scheme, it said.

The fund will be open-ended, which means that investor money will not be subject to a lock-in.

The group has put together a team to handle the new business, with hiring mostly from within the group at the moment, according to a company official.

Interestingly, the asset management business is listed on the Bombay Stock Exchange BSE and the Madras Stock Exchange.  

Shriram Credit Company acquired a 40 per cent stake in the listed entity, picking up 2.67 per cent from erstwhile promoter R Thyagarajan and 40 per cent from Shriram Transport Finance Co Ltd.

An open offer to pick up 1.56 million shares or 26 per cent through an open offer was subsequently announced.

The company hopes to start operations by September, subject to regulatory approvals, said the company official.
THE RETURN OF SHRIRAM

• Shriram files for balanced fund
• Scheme will invest a minimum of 65% in equity
• Its debt holdings can be up to 35%
• Company hiring from within the group for now
• Liquid, dynamic funds on the anvil