Indian financial service firm Bajaj Finserv has secured regulatory approval to set up a mutual fund business.

The Securities and Exchange Board of India (SEBI) granted in-principal nod for the firm for sponsoring a mutual fund.

The company is also planning to establish an asset management company (AMC).

Bajaj Finserv in an exchange filing said that it would set up an AMC and the Trustee Company, directly or indirectly, ‘i.e., itself or through its subsidiary in accordance with applicable SEBI Regulations and other applicable laws.’

Bajaj Finserv was founded in 2007 following its demerger from Bajaj Auto. The firm specialises in lending, asset management, wealth management and insurance services.

Bajaj Finance, the firm’s sister entity, has a presence in 2,392 locations, including 1,357 in rural areas, small towns and villages.

Recent developments in India

Last week, American e-commerce giant Amazon forayed into Indian wealth management market by making investment in startup smallcase Technologies.

Last month, India-based wealth management startup Tarraki entered into a strategic partnership with alternate investment platform smallcase.

The same month, American investment giant Goldman Sachs revealed plans to hire more than employees in India by 2023 as it looks to bolster its operations globally.

In June this year, Indian investment technology platform WealthDesk raked in $3.2m in its pre-series A funding round to accelerate growth.

The same month, India-based investment management startup Upside Ai, which specialises in machine learning-based investing, raised $1.2m in a new financing round.

In May this year, Credit Suisse revealed plans to hire more than 1,000 IT employees in India this year to establish the country as a centre for technology innovation across the bank globally.