SEBI's (Securities and Exchange Board of India) mutual fund advisory committee has suggested that asset management companies (AMCs) with assets under management (AUM) of over Rs. 10 billion should have a net worth of Rs. 250 million, according to a media report.
In a meeting in Mumbai on Tuesday, the committee recommended that fund houses with AUM of around Rs. 10 billion should have a net worth of Rs. 250 million as against the current net worth requirement of Rs 100 million, the report added.
The committee has also suggested Rs. 250 million as the minimum net worth for new players.
The committee has also recommended that fund houses need to put in seed capital of Rs. 5 million for each scheme. This would be counted as part of net worth and excludes fixed maturity plans.
The recommendations of the mutual fund advisory committee would be sent to SEBI for approval.