Explorer

Zerodha Receives Final Approval To Launch Asset Management Company: CEO Nithin Kamath

Kamath informed that the new business of the firm will be headed by industry veteran Vishal Jain.

Zerodha has received permission to set up an asset management company, founder and CEO Nithin Kamath revealed on Friday. The discount broking firm has got the final approval from the Securities and Exchange Board of India (SEBI), Kamath announced on X, formerly known as Twitter. 

According to a PTI report, Kamath informed that the new business of the firm will be headed by industry veteran Vishal Jain. He said, “I'm also excited that Vishal Jain, who's been part of the entire passive investing journey in India from day one, has joined us as a CEO to build the AMC”.

Earlier in April this year, Zerodha along with Smallcase, a wealth management firm, announced a joint venture to launch Zerodha AMC business. Kamath added in his post, “We just received the final approval for the Zerodha AMC that we are building in partnership with Smallcase.”

Zerodha applied for a licence to start mutual fund operations back in February 2020, the report noted. Regarding the final approval, Kamath explained the company’s motivation to go ahead with the mutual fund was twofold. “The first was that the biggest challenge and opportunity for Indian markets is the shallow participation. Even after all the growth over the last three years, we only have maybe 6-8 crore unique mutual fund and equity investors put together,” he said. 

Also Read : Bank of Maharashtra Cuts Home, Car Loan Rates, Waives Processing Fee

He further added, “The second was that if we had to bring in the next 10 million investors, they needed simple products they could understand, and mutual funds were a perfect instrument. We aim to be index-only and create simple funds and ETFs that all investors can understand and invest in for all their goals.”

The brokerage firm began in 2010 as a ‘Rs 20 per order broker’ and gradually became popular as a no-frills, economic player among traders, specially high-volume derivatives traders. The firm’s entry in the mutual fund industry is likely to be watched by the relevant stakeholders.

View More
Advertisement
Advertisement
25°C
New Delhi
Rain: 100mm
Humidity: 97%
Wind: WNW 47km/h
See Today's Weather
powered by
Accu Weather
Advertisement

Top Headlines

Mumbai: 13 Dead After Ferry Capsizes Near Gateway Of India, 101 Rescued, CM Announces Ex Gratia
Mumbai: 13 Dead After Ferry Capsizes Near Gateway Of India, 101 Rescued, CM Announces Ex Gratia
JPC Constituted On 'One Nation One Election' Bills, Priyanka Gandhi, Anurag Thakur Among Members
JPC Constituted On 'One Nation One Election' Bills, Priyanka Gandhi, Anurag Thakur Among Members
Moment When Speed Boat Rammed Into 'Neelkamal' Ferry, Which Capsized Killing 13 In Mumbai — On Cam
Moment When Speed Boat Rammed Into 'Neelkamal' Ferry, Which Capsized Killing 13 In Mumbai — On Cam
'PM Modi Should Sack Amit Shah By Midnight If...': Congress' Big Attack On Centre Over Ambedkar Issue
'PM Modi Should Sack Amit Shah By Midnight If...': Congress' Big Attack On Centre Over Ambedkar Issue
Advertisement
ABP Premium

Videos

Priyanka Gandhi's bag creates a stir in politics, listen to what the Congress MP says in answer to the questions | ABP NewsParliament Session: Mallikarjun Kharge's allegation, 'Amit Shah insulted Baba Saheb Ambedkar' | ABP newsParliament Session: What did Shah say in Parliament after which Congress accused him of insulting AmbedkarParliament Session: 'Let me tell the 54-year-old youth who wants to change the Constitution...' Amit Shah

Photo Gallery

Embed widget