Barely a year after it commenced operations in India, Shinsei Bank Limited has decided to sell off its entire stake in Shinsei Asset Management Company (India), which manages Shinsei Mutual Fund (MF), to Daiwa Securities Group (comprising Daiwa Securities Group Inc and Daiwa AMC).
Shinsei AMC is promoted by Shinsei Bank of Japan. It holds 75 per cent stake in the AMC; 15 per cent is held by well-known investor Rakesh Jhunjhunwala and 1o per cent by Freedom Financial Services.
Under the agreement, the other two domestic share holders too will divest their stakes. Both the parties will apply to the Securities and Exchange Board of India (Sebi) for regulatory approval.
Sebi granted approval to Shinsei MF in February 2009. Its first fund was launched in June 2009. Shinsei AMC presently has three active funds – Shinsei Industry Leaders, Shinsei Liquid and Shinsei Treasury Advantage Fund.
The decision is part of Daiwa Securities Group's plan to expand its business in Asia and to enter the Indian domestic asset management business.
Shinsei Bank is a leading diversified Japanese financial institution with total assets of US$ 124.9 billion on a consolidated basis (December 2009). Daiwa Group is also a leading financial services group from Japan. Daiwa is Japan's second largest asset management company with over US$ 100 billion of assets under management.
