August 24, 2021 03:31 PM
Financial services company Bajaj Finserv on Tuesday announced that the Indian market regulator Securities and Exchange Board of India (SEBI) has given its in-principal nod to the company for sponsoring a Mutual Fund. Bajaj Finserv gets SEBI approval for mutual fund business. The company would also be setting an Asset Management Company (AMC).
“Accordingly, the company would be setting up an Asset Management Company (AMC) and the Trustee Company, directly or indirectly i.e., itself or through its subsidiary in accordance with applicable SEBI Regulations and other applicable laws,” Bajaj Finserv said in an exchange filing.
Shares of Bajaj Finserv were trading over 3% higher to Rs 15,785 per share on the BSE in Tuesday’s first half of the trading session. The stock has surged more than 75% this year (year-to-date) whereas its up over 140% in one year. Bajaj Finserv is focused on lending, asset management, wealth management and insurance services.
The company was formed in 2007 as a result of its demerger from Bajaj Auto Limited to further the group’s interest in financial services. Bajaj Finserv is the holding company for the businesses dealing with financial services of the Bajaj Group.
Rahul Sharma, Co-Founder, Equity99 said, “The company plans to offer all financial services and deliver seamlessly through an app-based platform. The business would leverage the digital platform to provide low-cost, high-value services, and the company is expected to benefit from synergies & its customer database.”
For the quarter ending June 2021, Bajaj Finserv reported an over 31% decline in consolidated net profit at Rs 833 crore. The company had reported a net profit of Rs 1,215 crore in the same quarter of the preceding fiscal. The consolidated total income also plunged to Rs 13,949 crore in Q1FY22 as against Rs 14,192 crore in the year-ago quarter.