AMC Stocks Surge on Sebi's New Rules

New Delhi, Jul 8 (PTI) Shares of asset management firms ended higher on Tuesday after markets regulator Sebi proposed allowing AMCs or their subsidiaries to offer additional services related to fund management.

The stock of UTI Asset Management Company edged higher by 2.73 per cent, HDFC Asset Management Company climbed 2.22 per cent, and Nippon Life India Asset Management went up by 1.19 per cent on the BSE.

"AMC stocks gained after Sebi proposed easing norms around mutual fund operations, allowing management of non-broad-based pooled funds without a PMS licence under stricter oversight," Siddhartha Khemka, Head - Research, Wealth Management at Motilal Oswal Financial Services Ltd, said.

Sebi on Monday proposed allowing asset management companies (AMCs) or their subsidiaries to offer additional services related to fund management, such as acting as Points of Presence (POP) for pension schemes and serving as global distributors for the funds they manage or advise.

Presently, AMCs and their subsidiaries are only allowed to provide services which are in the nature of management and advisory of pooled funds.

On Points of Presence for pension funds, Sebi proposed that subsidiaries of AMCs registered as pension fund managers may be allowed to offer POP services and receive compensation as permitted by PFRDA, according to its consultation paper.

However, AMCs should ensure that the interests of mutual fund investors are not affected.