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Fair Trade Regulator Approves Kotak Mahindra-PineBridge Mutual Funds Deal

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New Delhi: The Competition Commission of India has given nod to Kotak Mahindra Mutual Fund's proposed acquisition of schemes run by PineBridge Mutual Fund.

Under the proposed combination, Kotak Mutual Fund would acquire control of the schemes of PineBridge Mutual Fund by way of change in trusteeship, management and administration.

Giving its green signal, the fair trade regulator said the deal is not likely to have appreciable adverse effect on competition in the country.

Most mutual funds in the country, including certain larger players, are offering similar schemes as that provided by the concerned entities, according to the competition watchdog.

Therefore, from demand side perspective, an investor may switch from one mutual fund to another offering similar type of schemes, it added.

The notice seeking approval was given by Kotak Mahindra Asset Management Company and Kotak Mahindra Trustee Company.

Kotak AMC manages the mutual fund schemes offered by Kotak MF, a trust with Kotak Mahindra Bank Ltd as the sponsor.

PBI Asset Management Company is into managing the schemes of PBI Mutual Fund - a trust sponsored by PineBridge Investments Japan Co.

"The parties' combined market share in the overall market of mutual funds in India would be 3.67 per cent which is significantly lower than the other large players in the mutual fund industry," CCI said in an order dated November 20 and released on Friday.

As per the regulator, at the end of June, Indian mutual fund industry's total average assets under management stood at Rs 9,93,232.40 crore.

The incremental increase in the market share of Kotak MF in the overall market of mutual fund due to the proposed combination would be 0.06 per cent, which is insignificant, the watchdog said.



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