Indian private sector lender YES BANK has secured the in-principle approval from the Securities & Exchange Board of India (SEBI) to start an asset management company (AMC), a trustee company and a mutual fund business.
The AMC business will channelise the savings of retail, corporate and institutional investors in equity and debt capital markets, the lender said.
“The AMC will further strengthen YES BANK’s expertise in wealth management solutions, debt capital markets and gain from its significant and growing customer base & distribution network, and overall execution expertise, to build a large and profitable Fund Management franchise,” Yes Bank said.
The AMC and the trust company will operate as wholly owned subsidiaries of the bank.
The bank has already tapped senior leadership and technology architecture for the new business, and expects to begin operations by 12 months.
In October 2015, the lender received approval from the Reserve Bank of India (RBI) for this business.