MF licence queue grows as three new players apply in June quarter

Nine entities are awaiting Sebi approval to launch mutual funds as strong retail participation, rising assets and low penetration continue to attract new entrants

The pipeline of prospective mutual fund (MF) players remains sizeable despite the rapid expansion in the number of fund houses in recent years, with nine entities awaiting regulatory approval from the Securities and Exchange Board of India (Sebi).

 

As of June 30, 2026, eight applicants were awaiting in-principle approval, while Marcellus Mutual Fund had received in-principle approval and was awaiting final registration. Three new entities — One Finance, Northeast Broking Services and Ashika Stock Services — filed applications during the April-June quarter. The other applicants awaiting in-principle approval are Estee Advisors, Prabhudas Lilladher, Ithought Financial Consulting, Pari Washington Company and Arihant Capital Markets.

 

 

The strong pipeline follows a steady expansion in the industry over the past few years. India now has 55 operational fund houses, which together manage ₹82.2 trillion. The surge in interest in the mutual fund business has been accompanied by a more than three-fold increase in industry assets since the onset of the pandemic, driven by sustained equity inflows, record systematic investment plan (SIP) contributions and growing retail participation.

 

"The attraction of new players to the MF industry is driven by multiple factors. The biggest opportunity is the industry's low penetration. India has just about 60 million unique MF investors despite a population of 1.4 billion, while mutual fund assets as a share of GDP are only about a quarter of the global average. Entry barriers are also relatively low, with minimum capital requirements of ₹50 crore for active fund houses and ₹35 crore for passive-only players," said Sunil Subramaniam, founder and chief executive officer, Sense and Simplicity.

 

According to experts, the introduction of Specialised Investment Funds (SIFs) has also encouraged several portfolio management services (PMS) and alternative investment fund (AIF) managers to seek mutual fund licences to guard against potential client migration.