Peerless Funds Management Co (PFMCL), Asset Managers to Peerless Mutual Fund, today announced an infusion of Rs 240 million as equity capital by its parent -The Peerless General Finance & Investment Co (PGFI). This infusion takes the total net worth of PFMCL to Rs 640 million, from the erstwhile Rs 400 million.
This move comes in light of SEBIs' directive to the mutual fund houses in February 2014, to increase their minimum net worth to Rs 500 million from the earlier Rs 100 million. Fund houses had been given three years to comply with this requirement.
Commenting on the development, Partho Sarothy Datta, chairman of PFMCL and also a director on the PGFI Board, said, "The Peerless Group is committed to creating long term value with integrity and patience. The Group is also committed to be a trusted provider of financial products and solutions for a varied group of customers. Peerless Mutual Fund epitomizes these principles. It's been five years since we commenced this business and we feel the time is now ripe for PMF to move to a phase of rapid, well-managed growth with vigour and confidence. The capital infusion is designed to provide a solid foundation to PMF's growth plans."
Rajiv Shastri, managing director & chief executive officer, PFMCL said, "We believe that the key to building a sustainable business lies in serving retail investors. This capital infusion by PGFI supports our growth strategy and will allow us to launch products suited to the retail investing population the group has served for decades. Given the unblemished legacy of the parent Group, it is also our responsibility to ensure that our approach to this business continues to uphold the ethical values established by the group."