Edelweiss gets CCI nod on purchase of JPMorgan’s India mutual fund business
The transaction, announced in March, marks the exit of another foreign fund house from the over Rs13 trillion domestic mutual fund industry
New Delhi: Financial services firm Edelweiss Asset Management Ltd has received the fair trade regulator Competition Commission of India’s (CCI) approval to acquire the mutual fund (MF) business of JPMorgan Asset Management India Pvt. Ltd in India.
The transaction, announced in March, marks the exit of another foreign fund house from the over ₹ 13 trillion domestic mutual fund industry.
In the past few years, a number of other global players have exited the Indian MF business. The CCI, which keeps a tab on unfair business practices, cleared the deal, as per the regulator’s website.
Under the deal, Edelweiss would acquire all onshore fund schemes managed by JPMorgan Asset Management in India including its country-based onshore mutual fund business and the international fund of funds, Edelweiss had said in March.
According to the scheme transfer agreement, the right to manage the JPMorgan MF schemes will be transferred by JPMorgan AMC to Edelweiss AMC, and the sponsorship of the JPMorgan MF schemes will be transferred by JPMorgan Sponsor to Edelweiss Sponsor.
Besides, Edelweiss Trustee will take over the trusteeship of the JPMorgan MF schemes from JPMorgan Trustee.
JP Morgan entered the Indian mutual fund business in 2007. Last year, JPMorgan MF got into trouble due to its exposure to debt securities of Amtek Auto Ltd.
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