Business Daily from THE HINDU group of publications
Tuesday, Sep 18, 2007
ePaper
Business Daily from THE HINDU group of publications Tuesday, Sep 18, 2007 ePaper |
|
|
|
|
|
|
|
Markets
-
Asset Management Companies
Our Bureau Kolkata, Sept. 17 Peerless Securities is expected to help bring about a major change its parent company’s current business model, courtesy an asset management venture that it plans to set up. The Peerless General Finance & Investment Co Ltd, which intends to enter the mutual funds business following in-principle approval from the SEBI, is a residuary non-banking company (RNBC). It is trying to identify viable alternatives for itself. Peerless is searching for a new strategy with a view to replace its existing model over a period of time. Such a strategy will also create “scale and depth,” adding these elements to the company’s activities, according to Mr Dipankar Basu, Chairman. Further, it will create greater scope for expansion and diversification. Peerless has warned, however, that a new enterprise on the mutual funds front may well take time to develop. If built efficiently, there will be additional brand equity to gain. The company, it may be mentioned, can act as an intermediary – a distributor of mutual funds – as it has obtained RBI permission. One of the group companies, Peerless Developers, is already a distributor of life and non-life insurance products, thanks to tie-ups with Max New York and Iffco Tokio respectively. Shareholders may not expect early return from this business, Mr Basu said, even while stating that the asset management sector is growing rapidly, in terms of greater assets, number of investors and profitability. The 30-plus players in the mutual funds business currently manage well over Rs 3 lakh crore (as on August 31). The sector has lately seen the arrival of new players, some of which are leading names in overseas markets. Several others are expected to foray into the Indian market in the days ahead. The proposed Peerless venture, when launched, will need to draw on the parent company’s depositor base as well as penetrate newer markets. The RNBC’s net owned fund stood at Rs 693 crore in 2006-07, compared to Rs 534 crore in the previous year. Peerless Securities currently has 20 branches, some of which were set up in Bangalore, Coimbatore and Siliguri last fiscal. Arranging franchises, online broking and wealth management are among its plans. More Stories on : Asset Management Companies
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | The Hindu ePaper | Business Line | Business Line ePaper | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2007, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|