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Zerodha Secures SEBI Approval to Launch AMC in Collaboration with Smallcase for Index Funds

• ByStartupStory     |    August 12, 2023

Zerodha has obtained the final green light from the Securities Exchange Board of India (SEBI) to establish an asset management company (AMC), according to a statement by CEO Nithin Kamath on X (formerly known as Twitter). The forthcoming Zerodha AMC, in collaboration with Amazon-backed wealth management firm Smallcase, will be dedicated to index funds. These funds will include equity traded funds (ETFs) designed for “all investors to comprehend.” The leadership of the AMC will be helmed by Vishal Jain, a former employee of Nippon India Mutual Fund.

“Our motivation to start a mutual fund was twofold. The first was that the biggest challenge and opportunity for Indian markets is shallow participation. Even after all the growth over the last 3 years, we only have maybe 6-8 crore unique mutual fund and equity investors put together,” Kamath wrote on X.

Earlier in April, Zerodha had announced its partnership with Smallcase to create its AMC, leveraging Smallcase’s six years of experience in crafting investment products. Zerodha, an online brokerage firm, initially gained SEBI’s in-principle approval to initiate its AMC endeavor in September 2021. The company had applied for a mutual fund operations license in February 2020, as part of its strategy to broaden its investment scope and tap into the realm of passive investors.

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