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The capital market regulator has proposed radical changes to the framework governing ownership structures at asset management companies (AMC), introducing the concept of sponsor-less fund houses.
In a consultation paper floated on Friday, the Securities and Exchange Board of India (Sebi) noted that the rationale for permitting disassociation of existing sponsors was that an AMC could meet all the sponsor-related eligibility requirements itself in a few years of existence.
To become a sponsor-free AMC, an entity must have positive liquid networth and net profit of at least Rs 10 crore in all of the preceding five years.
In a consultation paper floated on Friday, the Securities and Exchange Board of India (Sebi) noted that the rationale for permitting disassociation of existing sponsors was that an AMC could meet all the sponsor-related eligibility requirements itself in a few years of existence.
To become a sponsor-free AMC, an entity must have positive liquid networth and net profit of at least Rs 10 crore in all of the preceding five years.
