1 Finance Gets In-Principle Approval for MF Lite AMC Business

1 Finance has received in-principle approval from the Securities and Exchange Board of India (SEBI) to establish an asset management company (AMC) under the MF Lite framework, as per news reports.  

The Mumbai-based personal finance advisory firm could become the first AMC to receive a licence under this framework. The company is targeting a launch in the fourth quarter of FY27.  

It will need to complete the required regulatory and operational formalities and obtain SEBI’s final registration before launching mutual fund schemes. 

Proposed Mutual Fund Schemes 

The proposed AMC will offer passive investment products, including index funds and exchange-traded funds (ETFs). These products track an underlying market index rather than depend on active stock selection by fund managers. 

The proposed business will add asset management to 1 Finance’s existing financial planning and advisory services. The company has more than ₹17,000 crore in assets under advice (AUA). 

SEBI’s MF Lite Framework 

SEBI introduced the MF Lite framework in December 2024 to make it easier for fund houses to enter the passive investment segment.  

The framework reduces regulatory and compliance requirements for eligible asset management companies, with the aim of lowering costs and encouraging more participation in the market. 

Conventional mutual fund licences allow AMCs to offer both actively and passively managed schemes. An MF Lite licence, however, is limited to eligible passive investment products.  

The in-principle approval is an initial step and does not allow 1 Finance to launch schemes without final registration. 

Management Comments 

Jeet Marwadi, co-founder and managing director of 1 Finance, said the company’s proposed entry into asset management was linked to its financial planning services. He cited asset allocation, tax efficiency, and disciplined investing as key elements of its approach. 

Keval Bhanushali, CEO and co-founder of 1 Finance, said the proposed business would make investment products a more integrated part of personal financial planning. He added that the company’s immediate focus was on meeting the requirements for setting up the AMC. 

Read More: Apple India Revenue Crosses ₹1 Lakh Crore in FY26; Profit Jumps 66%! 

Conclusion 

1 Finance’s entry into asset management remains subject to SEBI’s final approval and completion of the necessary formalities. The company is aiming to begin operations in Q4FY27, with a focus on passive mutual fund schemes. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

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