Sebi's Proposal Boosts AMC Shares as New Services Unveiled

Shares of asset management firms rose after Sebi proposed rules to allow AMCs to offer additional fund management services. Stocks of leading companies like UTI AMC and HDFC AMC witnessed gains. The proposal includes enabling AMCs to act as Points of Presence for pension schemes with regulatory oversight.

In a positive turn for asset management firms, shares ended higher on Tuesday, spurred by regulatory developments from markets watchdog Sebi. The regulator proposed allowing AMCs, or their subsidiaries, to broaden service offerings linked to fund management.

UTI Asset Management Company saw its stock rise by 2.73% while HDFC Asset Management Company and Nippon Life India Asset Management experienced gains of 2.22% and 1.19%, respectively, on the Bombay Stock Exchange. These movements follow Sebi's plan to relax norms related to mutual fund operations, easing restrictions around managing non-broad-based pooled funds without requiring a portfolio management service license.

Under the new proposals, asset management companies may soon serve as Points of Presence for pension schemes and global distributors for the funds under their management. The proposed enhancements aim to expand services yet maintain protections for mutual fund investors, as detailed in Sebi's consultation paper on Monday.

(With inputs from agencies.)