New Delhi, India – The Indian mutual fund industry has seen exponential growth, attracting new players to tap into the country's retail and institutional investment landscape. However, entering this highly regulated sector requires strict adherence to the guidelines laid down by the Securities and Exchange Board of India (SEBI).

For businesses and entrepreneurs planning to start a mutual fund business in India, understanding the minimum capital requirements and regulatory compliances is crucial.
💼 Minimum Capital Requirement

As per SEBI (Mutual Funds) Regulations, 1996, any entity intending to operate a mutual fund must:

Be set up as a Trust, with the Sponsor establishing a Trustee Company and Asset Management Company (AMC).

Have a minimum net worth of ₹50 crore for the Asset Management Company (AMC). This must be maintained at all times.

Additionally, the Sponsor must have a positive track record and net worth of ₹100 crore in the last 5 years, among other eligibility criteria.

These capital thresholds ensure financial stability, investor protection, and long-term sustainability.
📋 Key Compliance Requirements

Launching a mutual fund business involves compliance at multiple levels:
1. SEBI Registration

Apply for registration as a Mutual Fund Sponsor.

Submit detailed documents, including:

Business plan

Track record

Financials

Organizational structure

Risk management policies

2. Formation of AMC & Trustee

Register a Trust under the Indian Trusts Act, 1882.

Establish:

A Trustee Company to supervise the fund operations.

An AMC to manage investor funds.

3. Approval of Key Personnel

SEBI scrutinizes qualifications, experience, and integrity of:

Fund Managers

Compliance Officers

Directors of AMC & Trustee Companies

4. Operational Infrastructure

Arrangements must be in place for:

Custody of funds (via registered custodians)

Compliance & internal audit

Investor grievance redressal

Scheme Information Documents (SIDs)

5. Trust Deed & Investment Schemes

Drafting and registering the Trust Deed

Filing of proposed scheme documents for approval before launch

✅ Why Corpzo?

Navigating these complex regulatory pathways requires legal, financial, and compliance expertise. Corpzo offers a one-stop solution for:

Drafting legal & trust documents

SEBI liaison & application handling

AMC & Trustee company incorporation

Compliance framework setup

End-to-end support for scheme launches

A Corpzo spokesperson stated:
"The mutual fund space offers huge opportunities, but only those prepared with the right legal foundation will thrive. At Corpzo, we simplify the regulatory process so fund managers can focus on performance and innovation."

Get Started with India's Trusted Compliance Partner
📍 Visit: www.corpzo.com
📞 Call: +91 9999 139 391
📧 Email: [email protected]