InCred Money Secures In-Principle Approval for Mutual Fund Licence from SEBI

InCred Money has received in-principle approval from the Securities and Exchange Board of India (SEBI) for its mutual fund licence application, as per news reports. 

The approval allows the company to begin setting up its asset management company (AMC) and trustee structure, although final registration will be required before any schemes can be launched. 

Launch May Take 6 to 9 Months 

The company expects the mutual fund business to become operational in the next 6 to 9 months. During this period, it will complete the remaining regulatory and operational formalities.  

Nitin Agrawal has been appointed chief executive of the mutual fund business and is overseeing the preparations. 

Platform to Add Mutual Funds 

InCred Money currently offers investment products including bonds, fixed deposits, alternative assets, and equity broking. The addition of a mutual fund business will expand its existing platform.  

The company has also started hiring across operations, compliance and fund management as work on the AMC progresses. 

Orowealth Acquisition Laid the Foundation 

The mutual fund plan has its origins in Orowealth, the direct mutual fund platform founded in 2016 by Vijay Kuppa along with Nitin Agrawal, Yogesh Powar and Swati Aggarwal.  

InCred Capital acquired Orowealth in an all-cash transaction in early 2023, adding more than ₹1,100 crore in assets under management along with its technology platform and team. 

New Entrant in Growing Mutual Fund Industry 

InCred Money joins several new firms seeking to enter India's asset management industry. The country's mutual fund sector has crossed ₹75 lakh crore in assets under management, while recent regulatory changes by SEBI have created additional routes for new players, including the MF Lite framework for passive investment products. 

Read More: Nykaa Targets USD 5 Billion+ GMV by FY30, Eyes Strong Growth Across Beauty and Fashion! 

Conclusion 

The in-principle approval marks the first regulatory step for InCred Money's mutual fund business. The company will need to complete the remaining approval process before commencing operations and introducing its fund offerings. 

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