Page 15 - Banking Finance January 2022

MUTUAL FUND

Mutual Fund

News

SBI to divest 6% in MF arm likely to hit the market in the first quar- silver of SEBI prescribed quality and
ter of next financial year, said people standard.
via IPO
close to the development. The asset A small portion of the net assets will
State Bank of India (SBI) has decided manager's IPO size could be between
to offload 6 per cent stake in its mu- Rs 7,000-Rs 7,500 crore, valuing the be invested in debt and money market
tual fund unit SBI Funds Management country's largest MF between Rs instruments to meet the liquidity re-
Private Ltd via an initial public offer 70,000-Rs 75,000 crore, they said. quirements of the scheme. It will also
(IPO). invest in instruments notified by SEBI
Senior officials in the fund house and with silver as underlying asset, said
"The Executive Committee of Central SBI said that the IPO process has al- Birla MF in its filing with SEBI.
Board of the bank has accorded ap- ready been kick-started and invest-
proval for exploring possibilities to ment bankers will be finalised soon. It will also invest up to 10 per cent of
offload 6 per cent stake of the bank in asset in exchange traded commodity
SBI Funds Management Private Ltd MFs rush to launch silver derivatives having silver as the under-
through the IPO route, subject to re- lying by Silver ETFs.
ceipt of all regulatory approvals," it ETF
said in a stock exchange filing. SBI has Leading mutual funds have queued up SEBI looking at disclosure
not indicated a timeline for coming to before market regulator SEBI for norms for ESG mutual
the market with a public offer. launching silver Exchange Traded Fund fund schemes
SBI Fund Management is India's larg- weeks after the market regulator
est mutual fund with assets under cleared regulations which paved the Markets regulator Sebi is in the process
management of Rs 578,166 crore as of way for retail investments in the white of putting in place disclosure for mu-
September. SBI currently holds 63 per metal. tual fund schemes with the ESG (envi-
ronment sustainability and gover-
cent stake. The remaining 37 per cent Aditya Birla Sun Life Mutual Fund,
nance) theme, its chief Ajay Tyagi said.
is held by Amundi India Holding. Nippon India and Mirae Asset filed
scheme information document (SID) Also, the regulator is examining the
SBI Mutual Fund may with market regulator SEBI for launch- disclosure of ESG related aspects in the
ing Silver Exchange Traded Fund. rating press release by credit rating
come out with Rs. 7,000- agencies, he added.
While Birla MF and Mirae Asset will
crore IPO in early FY23 launch silver ETF, Nippon MF will hit the Speaking at the inauguration of an ESG
SBI Funds Management's (SBI Mutual market with both an ETF and a Fund Centre for Research and Innovation at
Fund) initial public offering (IPO) is of Fund. The ETF will invest in physical IIM Ahmedabad, Tyagi stressed on the

BANKING FINANCE | JANUARY | 2022 | 15