New Delhi: Competition regulator CCI has approved the acquisition of 25 percent stake in Axis Asset Management Company by Schroder Singapore Holding Pvt Ltd (SSHL), the asset management arm of UK-based Schroders Plc.
"Considering the facts on record and the details provided in the notice and the assessment of the proposed combination is not likely to have an appreciable adverse effect on competition in india and therefore the Commission hereby approves the proposed combination," the Competition Commission of India (CCI) said in its order.
CCI said that while SSHL, the investment vehicle created for the takeover of Axis AMC and Axis MF Trustee, has no presence in India, Schroder Investment Management (Singapore) Ltd (SIMSL) is present globally in the market for asset management services, portfolio management and related advisory services.
However, SIMSL has no presence in India in the asset management services and portfolio management services.
"There are more than 40 other AMCs and more than 200 portfolio managers registered in India with Sebi, implying significant competition prevailing in the market of mutual funds as well as portfolio management services. There is, therefore, ample choice available to the customers...," CCI said.
CCI pointed out that the market share of Axis Mutual Fund is insignificant along with the presence of various other players who have larger market shares in the Indian mutual funds market.
In April, Axis Bank's board has approved the 25 percent stake sale in its subsidiary Axis Asset Management Company to Schroder Singapore Holding Pvt Ltd. However, the financial details of the deal has not been disclosed.
The deal would provide Axis AMC access to Schroders' global distribution network as well as opportunity to advise overseas funds having investments in Indian securities.