IDFC AMC gets Sebi nod for change in ownership

Markets regulator Sebi has approved the acquisition of IDFC Asset Management Company Limited (IDFC AMC) by a consortium comprising Bandhan Financial Holdings Limited, GIC and ChrysCapital.

In a release on Wednesday, IDFC AMC said the proposed deal has been cleared by Sebi.

Last month, the Reserve Bank of India's (RBI) approved the deal and the Competition Commission of India (CCI) gave its clearance in August.

In April, the board of directors of IDFC Limited and IDFC Financial Holding Company Limited approved the sale of IDFC AMC and IDFC AMC Trustee Company Limited to the consortium.

Following the completion of the proposed transition, Bandhan Financial Holdings Limited (BFHL) will own about 60 per cent and GIC and ChrysCapital will own approximately 20 per cent each in IDFC AMC.

On completion of the transition, IDFC AMC is proposed to be renamed as Bandhan Asset Management Company Limited and IDFC Mutual Fund (IDFC MF) is proposed to be renamed as Bandhan Mutual Fund, with BFHL becoming the sponsor of the mutual fund.

Consequently, each scheme of IDFC MF will be renamed to replace the word 'IDFC' with the word 'Bandhan'.

The consortium of incoming shareholders envisages the continuity of the current management team and investment processes at IDFC AMC, the asset management company said in a release.

"As a result, the unitholders of IDFC MF would continue to benefit from the same high quality investment approach and focus that IDFC AMC is reputed for," it added.

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