The Netherland's ABN Amro
is preparing to jump into the mutual fund industry in India. The firm, which also operates a fund business in the United States, is reportedly preparing to seek approval for the effort with the Securities and Exchange Board of India. The Board serves a similar purpose in India as the SEC does in the United States.
ABN Amro already approached India's foreign investment promotion board seeking approval for the new company, according to India's Business Standard
. It has had permission to operate funds through ABN Amro Securities India Pvt Ltd since 1998 but has never done so. The paper cited government officials as the source of its information.
The Dutch firm will initially invest $5 million towards its asset management operations in India and plans to launch both fixed income and equity funds in that market. ABN Amro is expected to retain a 75 percent stake in the new asset management company and to sell the remainder to local partners who will provide portfolio management and other services.
, currently senior vice president, is expected to win the appointment as chief executive officer of the new unit.
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