Private sector lender Yes Bank has received an in-principle approval from Securities & Exchange Board of India (SEBI) to sponsor a mutual fund, to setup an asset management company and a trustee company.
The AMC and the trustee company shall be set up as wholly owned subsidiaries of the bank. RBI had granted approval to the bank in this connection in October last year, a statement issued here said today.
The bank has already identified senior leadership and technology architecture to establish this business, and will commence operations within 12 months, it added.
As per the statement, the AMC will channelise the savings of retail, corporate and institutional investors in equity and debt capital markets by leveraging the bank's knowledge banking expertise.
"This will complement the bank's retail liabilities strategy, and also allow the AMC to leverage the bank's 'DIGICAL' distribution network for customer acquisition, and provide customers a seamless experience for their investments and savings solutions", it added.
