20 May, 2010

Pramerica gets SEBI nod for MF biz; to launch products in June

Pramerica Asset Managers, the Indian arm of the US-based Prudential Financial, said it has received market regulator SEBI's approval for starting mutual fund operations in the domestic market.

"We have received the final approval from SEBI. We hope to launch the first product by June-end," Pramerica Asset Managers MD and CEO Vijai Mantri said."Within the next 7-10 days we would be filing for a couple of products with the regulator. They would be mixture of debt and equity," Mantri said. Over the next 12-18 months, Pramerica MF will launch 2-3 equity funds and 4-5 debt schemes, he said.

With this approval, Pramerica has joined the league of Italian bank UniCredit's arm Pioneer Global, Japan's Shinsei, South Korea's Mirae Asset and France's Axa, who have launched their products in the country over the past three years.
The US-based parent has already infused USD 7.5 million into the Indian AMC. "They will be infusing another USD 50 million over the next two years into the Indian arm," Mantri said. The fund house would be opening 10 branches by June for distributing products. "Over the next 12 months we will open another 25 distribution centres and take the number to 50 in the next two year's time," he added.

The country's mutual fund industry's average assets under management stood at Rs 7.68 lakh crore at the end of April, data from the Association of Mutual Funds in India shows