Page 15 - Banking Finance February 2022

MUTUAL FUND

Mutual Fund News

Yes Mutual Fund rechris- Management from Yes Bank in Sep- Bank of India (RBI) to enhance the in-
tember. dustry limits, which might take time.
tened as White Oak Capi- Till then, all the fresh flows whether it
In August 2020, the private lender had
tal Mutual Fund executed a definitive agreement for is through lumpsum, or systematic in-
Yes Asset Management's name has the sale of 100 per cent of the equity vestment plan (SIPs) will be stopped by
been changed to White Oak Capital shareholding of Yes Asset Management the fund house," said an official from
Asset Management with effect from (India) Ltd and Yes Trustee Ltd, both the industry.
January 12. wholly-owned subsidiaries of Yes Bank, Last year in June, Sebi had increased
Further, Yes Mutual Fund will now be to GPL Finance. the limit from $600 million to $1 billion
per mutual fund within the overall in-
called White Oak Capital Mutual Fund,
Aashish P Sommaiyaa, Chief Executive Sebi advises mutual funds dustry overall limit of US$7 billion. Cur-
Officer of White Oak Capital, an- to stop subscriptions into rently, MFs can make investments in
nounced in a tweet on Thursday. overseas ETFs subject to a maximum of
overseas funds $300 million per MF, within the over-
He, further, said: "WhiteOakCap has all industry limit of $1 billion.
filed equity MF offer documents for Securities and Exchange Board of India
regulatory approval". (Sebi) has advised Mutual Fund (MF) Officials also say regulators have al-
houses to stop subscription in the lowed investments into ETFs because
Founded by Prashant Khemka, formerly schemes intending to invest in overseas the $1 billion limit is yet to fully utilize.
CIO of Goldman Sachs Asset securities. The move comes as the in-
Management's India Equity and Global dustry is likely to breach the $7 billion- Indian fund houses have launched vari-
Emerging Markets Equity businesses, ous international focused Fund of Funds
mark.
White Oak Capital group provides in- (FoF) in the last few months as such
vestment management and advisory However, the investments in overseas products offer investors diversification
services for equity assets of over Rs exchange traded funds (ETFs) may con- towards the global equities. The data
42,000 crore. tinue till further communication. The from Prime MF database shows that
announcement might impact several aggregate mutual funds holdings in
In November, White Oak Capital group
schemes that invest in foreign stocks. foreign equity as on December 21 was
announced the completion of the Rs 34,521.31 crore.
transaction to acquire the mutual fund Industry participants say that Associa-
business of Yes Bank. tion of Mutual Funds in India (Amfi) will Recently, Motilal Oswal Asset Man-
send a detailed communication along agement Company (AMC) had tempo-
GPL Finance and Investments, a subsid- with an addendum that will be re- rarily halted lump-sum subscription and
iary of White Oak Capital group, had
leased soon. switch-ins under its three international
received capital markets regulator schemes, to manage overseas invest-
"Amfi has also requested the Reserve
Sebi's approval to acquire Yes Asset
ment limits.
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