IDFC Mutual Fund to be Renamed Bandhan Mutual Fund: One of the top 10 asset management companies in the nation, IDFC Asset Management Company Limited (AMC), has acquired regulatory approvals for its proposed change of ownership.
December 2022 Current Affairs Quiz
About This Transition:
Securities market regulator SEBI granted the necessary no objection for IDFC AMC’s acquisition by a consortium comprising Bandhan Financial Holdings Limited (BFHL), GIC (GIC), and ChrysCapital (CC).
The Reserve Bank of India (RBI) granted its approval, whereas the Competition Commission of India (CCI) had already approved the deal in August 2022. The sale of IDFC AMC and IDFC AMC Trustee Company Limited to the consortium was authorised by the boards of directors of IDFC Limited and IDFC Financial Holding Company Limited in April 2022.
The New Stakes:
Consequent to the completion of the proposed transition, BFHL will own approximately 60% and GIC & CC will own approximately 20% each in IDFC AMC. After the transition is complete, it is proposed that IDFC AMC and IDFC Mutual Fund (MF) be rebranded as Bandhan Asset Management Company Limited and Bandhan Mutual Fund, respectively, with BFHL taking on the role of the Mutual Fund’s Sponsor.
About The Other Changes:
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. 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.
