SEBI gives green light to Bajaj Finserv to expand financial solutions with mutual fund operations
02-Mar-2023 •Chirag Madia
Bajaj Finserv Limited announced on Monday that it has received final approval from the Securities and Exchange Board of India (SEBI) to start its mutual fund operations under Bajaj Finserv Mutual Fund, with Bajaj Finserv Asset Management Limited (BFAML) as the Investment Manager. The company will soon offer a range of mutual fund products, including equity, debt, and hybrid funds, in both active and passive segments, to investors.
In August 2022, Bajaj Finserv, a leading diversified financial services group, received in-principle approval from the market regulator to sponsor a mutual fund. "The approval from SEBI is strategically important for Bajaj Finserv as it enables the company to complete its suite of financial solutions for retail customers", said Sanjiv Bajaj, Chairman & Managing Director, Bajaj Finserv. Through its businesses, the company provides financial solutions, including savings, financing, protection, and wealth creation, to investors in India.
Ganesh Mohan, who has been Group Head of Corporate Strategy at Bajaj Finserv for the past eight years, will take over as CEO of the fund house. He previously spent 16 years in various leadership roles with The Boston Consulting Group. Meanwhile, Nimesh Chandan has already joined Bajaj Finserv Asset Management as Chief Investment Officer (CIO). He has worked in the mutual fund industry for 17 years, most recently as Head - Investments, Equities at Canara Robeco AMC.
During his tenure as a fund manager at Canara Robeco Mutual Fund from 2008 to 2010, Nimesh Chandan successfully generated positive returns relative to the benchmark. Specifically, the Canara Robeco Emerging Equities Fund yielded returns of 25.04 per cent, outperforming the category average of 22.20 per cent, while the Canara Robeco Flexi Cap Fund delivered returns of 32.85 per cent, surpassing the category average of 23.32 per cent.
In addition to the CEO and CIO, the new fund house has assembled a team across various areas, including sales and distribution, operations, finance, and information technology.
As of the December quarter, there were 42 fund houses in India, managing Rs 40 lakh crore in assets. Other three entities, like Zerodha Broking, Helios Capital Management, and Old Bridge Capital Management, have received in-principle approval, and approval for final registration is under consideration. SEBI is also considering in-principle approval for seven additional entities.