July 5: Yes Bank has come a step closer to rolling out the first batch of products under its planned mutual fund business. The country’s fourth largest private sector bank has now received the green signal from capital markets regulator Sebi for stepping into the mutual fund foray.
Yes Bank has confirmed on Wednesday that it has received approval from Sebi to start mutual fund business. The approval follows the in-principle approval received from the regulator. Yes Bank has already received the approval from the Reserve Bank of India to sponsor mutual fund prior to the approval from Sebi.
Yes Bank Managing Director and Chief Executive Officer Rana Kapoor has been quoted as saying that the bank will effectively channelize its assets in equity and debt capital markets by leveraging the Knowledge Banking expertise of Yes Bank along with its relationship capital across retail, corporate and institutional investors.
With the move, Yes Bank Asset Management India Ltd (YAMIL) will eye to build on bank’s distribution network so as to deliver a ‘seamless investment and banking experience’ to its customers. Mr. Kapoor also said that the initiative would also further complement the bank’s retail liabilities and wealth management strategy.
The mutual fund operations will be executed by a distinct team that has already been recruited by the bank. The team will be establishing the mutual fund operations under the guidance of the Board of Directors and trustees. The mutual fund product offerings from the bank are expected to get launched within one year across both debt and equity markets.