The Competition Commission of India (CCI) has approved LIC Mutual Fund Asset Management Ltd’s (LIC AMC) proposed acquisition of the management rights of IDBI MF schemes from IDBI Asset Management Ltd.
The proposed deal entails LIC AMC’s right to manage and administer the schemes of IDBI Mutual Fund (IDBI MF) from IDBI Asset Management Ltd (IDBI AMC).
It also covers LIC Mutual Fund Trustee Pvt Ltd (LIC TC’s) acquisition of the trusteeship rights of the schemes of IDBI MF from IDBI MF Trustee Company Ltd (IDBI TC)
Consequently, the schemes of IDBI MF will form part of LIC Mutual Fund (LIC MF) with LIC AMC acting as the asset management company for the schemes, and LIC TC the trustee company, an official release said.
Also, as part of consideration, apart from lumpsum consideration, IDBI AMC will also acquire certain non-controlling shareholding in LIC AMC (LIC AMC, LIC TC, and IDBI AMC are collectively referred to as the “Acquirers”).
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LIC AMC/ LIC TC
Life Insurance Corporation of India (LIC) is the sponsor of LIC Mutual Fund (LIC MF). LIC is the ultimate parent company of LIC AMC and LIC TC.
LIC AMC and LIC TC belong to the LIC Group. LIC AMC will be the asset management company to LIC MF, while LIC TC acts as the trustee company of LIC MF in India. LIC AMC acts as an investment management advisor to LIC MF. It manages the investment portfolio and provides various administrative services to LIC MF.
IDBI MF/ IDBI AMC/ IDBI TC
The target is the schemes of IDBI MF. IDBI Bank Ltd is the sponsor of IDBI MF. IDBI AMC’s principal activity is to act as an asset management company to IDBI MF, while IDBI TC acts as the trustee company of IDBI MF in India, the release added.