Groww Mutual Fund receives Sebi approval to launch its first index fund

Groww has received the approval of the Securities and Exchange Board of India to launch its first index fund - Groww Nifty Total Markets Index Fund - through new fund offering

Online stock broking firm Groww on Thursday announced that the firm has received the approval of the Securities and Exchange Board of India (Sebi) to launch its first index fund — Groww Nifty Total Markets Index Fund — through new fund offering (NFO), according to a report in the Moneycontrol.

Lalit Keshre, co-founder of Groww, wrote on X (formerly Twitter): "Groww Mutual Fund got approval for its first NFO — Groww Nifty Total Market Index Fund."

An NFO is the first subscription offering for a new fund offered by an investment company.

According to sources, Groww Mutual Fund submitted draft documents with the Sebi on September 5 for the launch of its index fund.

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On September 4, online stock broking firm Zerodha had announced the launch of its two new schemes — Zerodha Tax Saver (ELSS) Nifty Large Midcap 250 Index Fund and Zerodha Nifty Large Midcap 250 Index Fund (ZN250) — under its mutual fund business, Zerodha Asset Management Limited.

In September 2021, Groww received the approval of the Competition Commission of India (CCI) to acquire Indiabulls Asset Management Company (AMC) and Indiabulls Trustee Company, according to the Moneycontrol report.

In May 2023, Groww acquired 100 per cent stake in the mutual fund business of Indiabulls Housing Finance for Rs 175.62 crore.

In June 2023, the Sebi had issued regulations for platforms such as Paytm, Zerodha, and Groww that offer transactions in direct plans for mutual fund schemes, which it calls execution-only platforms (EOPs).

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