BNP Paribas Mutual Fund ceases to exist as a mutual fund, capital markets regulator Sebi said on Wednesday.
This comes after BNP Paribas Asset Management Company Private Limited (BNPP AMC) informed Sebi that it wants to surrender the registration granted to BNP Paribas Mutual Fund by the market regulator pursuant to change in control.
Following this, Sebi has accepted the request for surrender of registration certification of BNP Paribas MF (BNPP MF). "Consequently, BNPP MF ceases to exist as a mutual fund with effect from April 13, 2022," the Securities and Exchange Board of India (Sebi) said in a statement.
Also, BNPP AMC has given an undertaking that the surviving AMC — Baroda BNP Paribas Assets Management India — and the surviving Trustee — Baroda BNP Paribas Trustee India — will continue to be liable for all liabilities/obligations, including monetary penalties, if any, for violations, if any, of provisions of the Sebi Act that have taken place before its surrender of the registration certificate.
‘Combining strengths’
Last month, Bank of Baroda and BNP Paribas Asset Management had announced that they have entered into a strategic partnership by combining the strengths of their respective asset management businesses to form 'Baroda BNP Paribas Mutual Fund'.
Bank of Baroda, the parent company of Baroda AMC, will hold 50.1 per cent stake in the combined entity, while BNP Paribas AMC, the asset management arm of BNP Paribas, a leading European bank, will hold the remaining 49.9 per cent stake.