Mumbai: Brokerage firm Motilal Oswal Financial Services Ltd said on Friday it has received an “in-principle approval” from the Securities and Exchange Board of India (Sebi) to commence mutual fund operations.
Motilal’s group entity, Passionate Investment Pvt. Ltd, which got the approval, had no immediate plan to rope in any partner in the venture, Motilal’s chairman and managing director Motilal Oswal said.
“We will begin the basic preparations in three-four months and then go to Sebi for the final approval... It will be only in 2009,” he said referring to the tentative launch time.
For many local brokerages, which already offer portfolio management to wealthy clients, and have nation-wide networks, diversifying into the funds business is a logical next move.