Principal AMC ceases to exist as an Mutual Fund- Sebi

Principal AMC ceases to exist as an Mutual Fund: Sebi

Principal Mutual Fund (Principal AMC) will cease to exist as a mutual fund from June 2, capital markets regulator Sebi announced on Thursday. The AMC had informed the markets regulator that it wants to surrender the registration granted by the regulator. “Sebi has accepted the request for surrender of certificate of registration of PMF. Consequently, PMF ceases to exist as a mutual fund w.e.f. June 2, 2022,” said Sebi in a statement.

In January 2021, Principal AMC, managing assets worth more than 9,500 crore, was acquired by Sundaram Mutual Fund for338.53 crore for 100% of the share capital of the AMC, Principal Trustee Company, and Principal Retirement Advisors. The schemes managed by Principal Asset Management will be acquired by Sundaram MF.

The deal received the required regulatory approvals from the Competition Commission of India (CCI) and from Sebi in November 2021.

According to Sebi, Principal MF will continue to be liable for all liabilities/obligations, including monetary penalties, if any, for violations, if any, of the provisions of Sebi Act and MF regulations that have taken place before its surrender of certificate of registration.