Sebi might soon allow PE players to snap up, set up their own AMCs

At present, PE firms are not banned from acting as a MF sponsor, however, the prerequisites make it difficult for them to acquire or run a fund house

Private equity (PE) players may soon get more leeway to snap up asset management companies (AMCs) or set up their own. Market regulator Securities and Exchange Board of India (Sebi) is likely to further ease mutual fund (MF) ownership rules, said people in the know. The issue will be taken up at its board meeting scheduled for Tuesday. The board is also likely to ease the framework governing superior voting rights (SR shares), in a bid to give more flexibility to the founders of new-age companies to raise capital before going public. Sebi could also operationalise the framework to allow