CHENNAI : India financial services firm DSP Group said it would buy the 40 per cent stake of its mutual fund joint venture, DSP BlackRock Investment Managers, owned by US-based BlackRock, on Monday.
The firm, fully owned by DSP, is proposed to be known as DSP Investment Managers Pvt. Ltd., and DSP BlackRock Mutual Fund is proposed to become DSP Mutual Fund, subject to regulatory approvals, the company said in a statement.
DSP BlackRock Investment Managers is a 60:40 joint venture between DSP Group and BlackRock. As of March 31, 2018, DSP BlackRock Investment Managers managed assets worth Rs 86,325 crore.
“The Indian asset management industry is evolving rapidly and calls for unique approaches that play to the various strengths of BlackRock and The DSP Group,” said Ryan Stork, Chairman of BlackRock Asia Pacific.
Foreign players exiting
The news comes at a time when foreign players such as Deutsche Bank, Morgan Stanley, ING and Nomura are exiting the asset management sector in India due to strict restrictions imposed by the Securities and Exchange Board of India that prohibit asset managers from charging a fee from investors who buy into schemes.“Though we will not be partners with regards to shareholding, DSP has tremendous respect for BlackRockand its principles,” said Hemendra Kothari, Chairman, DSP BlackRock Investment Managers Pvt. Ltd.