The Hindu Business Line : SEBI nod for Fidelity's MF business

FIDELITY, one of the world's largest providers of financial services, has received the in-principle approval from the Securities and Exchange Board of India to set up its mutual fund business in India.

The date of launch has been recast towards the end of the year.

Earlier, Fidelity was hopeful of starting business in the country by September.

"We recently received in-principle approval from SEBI. However, there are still a number of steps and approvals to go through before we can commence business.

Only after SEBI gives us final registration will we be able to start business in India," said Ms Ashu Suyash, Chief Executive Officer, Fidelity India.

The asset management company and its trustee, which will be the fund managers to the schemes that Fidelity will launch, are in the process of being set up.

The confirmation of incorporation of Fidelity Fund Management Pvt Ltd has been given to the company, according to sources.

The company will now have to apply for registration and file the prospectus for the various schemes that would be launched.

Fidelity would be an equity-centric fund house, according to Ms Suyash.

This is in contrast to the debt skew that existing mutual fund houses in India display.

Mutual fund houses and distributors have been closely watching Fidelity's Indian launch.

ABN Amro, the other multinational entrant to the industry this year, launched its AMC last week and expects the initial public offer of its five maiden schemes by the end of July.

Staff recruitment to fill various positions is currently under way.

Earlier, Fidelity had announced the appointment of Ms Suyash as the business head of the AMC and Mr Arun Mehra as the equity fund manager.

Fidelity International Ltd manages mutual fund and pension fund assets of over $141.5 billion for non-US investors and does business outside the US in 25 countries across the world.

Fidelity International's Indian operations were initially focused on systems development, through Fidelity Technology India, a subsidiary of FIL. In 2003, Fidelity International established a back-office operations centre, including mutual fund administration, a call centre for Fidelity's European mutual fund business and pension fund management back-office operations and systems, in Gurgaon, near New Delhi.

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