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Merger of BNP Paribas mutual fund & Bank of Baroda (BOB) mutual fund gets CCI nod

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On November 14, 2019, Competition Commission of India (CCI),a statutory body of the Government of India (GoI), has approved the amalgamation of the BNP (Bank of Paris and the Netherlands) Paribas- BNPP  Mutual Fund and Bank of Baroda (BOB) Mutual Fund, under Section 31(1) of the Competition Act, 2002.
The strategic alliance would allow both companies to merge (i) BOB Asset Management Company (AMC) into BNPP AMC (ii) BNPP Trustee Company (TC) into BOB TC. After this arrangement, BNPP AMC and BOB TC will be the surviving entities.CCI approves merger of BNP&BOB newKey Points:

i.Both the surviving entities  (BNPP AMC & BOB TC) will act as the investment manager for their respective Mutual fund (MF).

ii.Registered as a Portfolio Manager under SEBI (Securities and Exchange Board of India) Regulations, BNPP AMC will offer portfolio management services and advisory activities.

iii.BNPP TC is the trustee company of BNPP Mutual Fund, while BOB TC will be the trustee for BOB Mutual Fund.

iv.Mutual Fund: It is a type of financial platform made up of a pool of money collected from many investors to invest in securities like stocks, bonds, money market instruments, and other assets

BNP Paribas mutual fund:
Formation- Apr-15-2004
Sponsor– BNP Paribas Asset Management Asia Limited
Trustee– BNP Paribas Trustee India Private Limited
Managing Director– Mr. Sharad Kumar Sharma

BOB Mutual Fund :
Baroda Asset Management India Limited,an investment manager to BoB MF,is a wholly owned subsidiary of Bank of Baroda and is positioned to serve the varied asset management needs of investors in India through a range of equity, debt and money market offerings.

About Section 31(1) of the Competition Act, 2002:
Under this act , the CCI is of the opinion that any combination does not, or is not likely to have an appreciable adverse effect on competition, it shall, by order, approve that combination including the combination in respect of which a notice has been given under sub-section (2) of section 6.

About CCI:
Formation- 14 October 2003
Headquarters- New Delhi
Chairman– Ashok Guptha