Deutsche Bank’s asset management division, DWS, is reportedly engaged in discussions with Nippon Life, a Japanese insurance provider, to establish a joint venture (JV) focused on asset management in India.

Sources familiar with the negotiations, who requested anonymity, indicated that the talks are in the preliminary stages and may face delays due to regulatory considerations, reported Reuters.

These discussions follow unsuccessful negotiations for a separate JV between DWS and a Chinese entity.

Both DWS and Deutsche Bank declined to comment on the ongoing discussions, while Nippon Life did not confirm the negotiations.

DWS and Nippon Life have an existing partnership, with Nippon Life holding a 5% stake in DWS, and the two companies collaborating on distribution and other initiatives.

Nippon Life became DWS’s second-largest investor after acquiring its stake during DWS’s listing in 2018, while Deutsche Bank retained a controlling interest of 79%.

The strategic alliance between the two firms has included collaboration in distribution and research.

Nippon Life currently manages a fund management business in India with assets totalling Rs5.67tn (around $67.18bn) and works with DWS on a European-listed India government bond exchange-traded fund.

Recent regulatory changes in India have enabled the creation of passive-only funds through spin-off entities. This development presents an opportunity for DWS and Nippon Life to form a jointly owned company specialising in exchange-traded and passively managed funds.

Meanwhile, DWS is seeking to increase its stake in Chinese fund manager Harvest, following previous discussions with Deutsche Bank and Postal Savings Bank of China regarding a joint venture that did not proceed due to disagreements over stake increases.

Last month, German prosecutors fined DWS €25m ($27m) for misrepresenting its environmental, social, and governance (ESG) credentials.