Correction - SBI cancels Sahara's portfolio management licence

(Corrects to say regulator cancels portfolio management license, not fund management licence, in the headline, first and fourth paragraphs)

MUMBAI (Reuters) - The Securities and Exchange Board of India (SEBI) said it has cancelled the portfolio management licence held by Sahara Asset Management Company Pvt Ltd, saying the firm did not comply with its "fit and proper" norms.

Financial firms must meet regulators' "fit and proper" criteria to operate in India.

The asset management unit is part of the broader Sahara conglomerate, which has tussled with the market regulator over bond issuances that were later ruled to be illegal.

SEBI said Sahara's asset management company has 30 days to transfer its portfolio management business to another company registered with the regulator or must allow its investors to redeem assets.

The asset manager had 1.47 billion rupees ($23.77 million) under management as of end of last year, as per data from Association of Mutual Funds of India.

Sahara did not immediately respond to a request for comment.

($1 = 61.8300 rupees)

(Reporting by Himank Sharma; Editing by Rafael Nam)