Emkay Global Financial Services has received in-principle approval from the Investment Management Department of the Securities and Exchange Board of India (SEBI) for sponsoring a Mutual Fund (MF) business and incorporate an Asset Management Company (AMC).
- Emkay Global Financial Services was established in 1995 and it presently offers services such as equity broking, commodity broking, currency broking, lending, depository participant, portfolio/wealth management services, investment banking and global investing.
Recent Entrants over MF:
i.Currently, there are 44 MF players with total assets under management of about Rs 40 lakh crore with top 10 players accounting for major share of business.
ii.Bajaj Finserv was the latest entrant to receive full-fledged MF licence and it has recently filed papers for launching seven new fund offers.
iii.Nitin Kamath-led Zerodha Broking and Frontline Capital Services also has received SEBI’s in-principle approval for entering MF business in 2021.
Cause of Rise in MF Entrants:
i.In 2021, SEBI released new norms of Securities and Exchange Board of India (MF) (Amendment) Regulations, 2021.
ii.Under the new norms, financial companies to become MF sponsors who do not fulfill profitability criteria at the time of making an application will also be considered to be eligible to sponsor a MF where the AMC is required to have a net worth of more than Rs 100 crore and the AMC should maintain this networth till it has profits for 5 consecutive years.
-Nexus Select Trust gets SEBI’s nod for REIT IPO
Nexus Select Trust, the retail-focused real estate investment trust, sponsored by private equity firm Blackstone, has received the final observations, and approval from the SEBI for its Real Estate Investment Trust (REIT) Initial Public Offering (IPO) of units.
Key Points:
i.The Nexus Select Trust’s Rs 4,000-crore REIT IPO consists of a fresh issue of Rs 1,600 crore while the remaining Rs 2,400 crore is through an offer of sale from its main sponsor Blackstone and other small holders.
ii.Nexus Select Trust plans to issue India’s first retail REIT by May 15, 2023 and the portion raised by the REIT might be used to pay down debt.
- The REIT currently owns about 17 shopping malls spread over close to 10 million square feet (msf).
- With an enterprise worth of Rs 23,000 crore and a debt of Rs 3,600 crore, the REIT will have about USD 500 million for making acquisitions and including to its portfolio.
- It already has an acquisition pipeline of 2.5 msf of assets in places such as Ranchi (Jharkhand) and Chennai (Tamil Nadu).
About Securities and Exchange Board of India (SEBI):
Chairperson -Madhabi Puri Buch
Headquarters – Mumbai, Maharashtra
Establishment – 12 April 1992
