Page 15 - Banking Finance January 2022
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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


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