In financial ecosystem, an Asset Management Company is inarguably one of most essential institutional players. The primary function of such a company is to manage pooled funds from investors and invest collected amount into various asset classes on their behalf.
If you are passionate about helping investors so they can grow their wealth, you might consider starting your own asset management company. In this blog post, we will explain how to start an asset management company in India.
An Asset Management Company, abbreviated as an AMC, is an entity that is registered with and authorised by Securities and Exchange Board of India (SEBI) to manage pooled funds from individual and institutional investors. It invests these funds in various asset classes, including in equities, corporate bonds, debentures, gold funds, etc.
All the AMCs in India are required to adhere to SEBI (Mutual Funds) Regulations, 2026. These regulations came into force on 1 April 2026 and led to replacement of SEBI (Mutual Funds) Regulations, 1996. The AMCs must also ensure compliance with guidelines and circulars released by the Board from time to time.
A mutual fund pools money from several investors with a shared financial goal across different schemes. The AMC is responsible for handling day-to-day investment management of those schemes. To invest pooled money across various asset classes, the AMC appoints a professional fund manager. This finance professional actively monitors performance of fund to check its alignment with scheme’s investment objectives.
This crucial role played by fund manager helps to manage risks and maximise returns for the investors. Apart from investment management, the AMC also takes care of other things like ensuring regulatory compliance, reporting requirements and providing customer service to investors.
If you want to start AMC in India, you need to apply for AMC registration with SEBI in accordance with SEBI (Mutual Funds) Regulations, 2026. To secure the registration, you need to ensure your entity meets eligibility requirements outlined in the said regulations. These requirements include the following:
The AMC must adhere to the fit and proper person criteria outlined in Schedule II of Securities and Exchange Board of India (Intermediaries) Regulations, 2008.
The AMC must appoint a Chief Executive Officer, Chief Operating Officer, Chief Risk Officer, Chief Compliance Officer and Chief Investment Officer. Each one of them shall have a minimum of 3 years of relevant experience.
All directors of the asset management company should have sufficient professional experience in fields related to finance and financial services.
The directors and chairman are prohibited from simultaneously serving on board of trustee company of any mutual fund.
The sponsor is responsible for ensuring that AMC maintains compliance with minimum net worth requirement at all times. They must ensure the asset management company maintains a net worth of at least fifty crores (Rs. 50 crores) under Route I. This amount has to be invested in assets specified by Board at all times. The sponsor is responsible for continuously meeting this net worth requirement.
No individual may hold position of director in more than one asset management company at the same time.
The AMC and sponsor must also fulfill any other requirements set forth by SEBI.
Below, we have explained steps involved in SEBI AMC registration process.
The application for approval of asset management company must be submitted in format specified by SEBI.
Any application that is not complete in all respects is subject to rejection. Before any application is rejected, the applicant will be given an opportunity to complete necessary formalities within the timeframe set forth by Board.
The Board may request the applicant to provide additional information or clarification as needed. The applicant must ensure to submit their response in a timely manner.
Upon receiving required information, the Board will make a decision regarding the application filed by applicant. If satisfied with application, the Board shall move to grant AMC registration certificate to applicant.
You May Also Read: How to Start a Mutual Fund Company in India?
AMCs are important pillars in the system of wealth creation. They are responsible for managing the funds collected from various investors. They invest the collected amount in different places like equities, corporate bonds and debentures among others. To start an AMC in India, getting SEBI's approval is something you cannot skip. So, if you plan to start one, make sure you meet all the basic rules and keep all your papers ready. This helps you send your application form easily and lower the chance of getting your application rejected.
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Q1. Which regulations are primary regulations for governing asset management companies in India?
A. The primary regulations for governing asset management companies in India are SEBI (Mutual Funds) Regulations, 2026. These regulations came into force on 1 April 2026 and replaced earlier prevailing SEBI (Mutual Funds) Regulations, 1996.
Q2. What is the minimum individual experience required for Key Managerial Personnel in AMC?
A. The Chief Executive Officer, Chief Operating Officer, Chief Risk Officer, Chief Compliance Officer and Chief Investment Officer appointed by an AMC shall have a minimum of 3 years of relevant experience.
Q3. What is the net worth requirement for AMC?
A. An AMC is required to maintain a net worth of at least fifty crores (Rs. 50 crores) at all times, under Route I.
Q4. Which authority grants approval / registration for starting an AMC in India?
A. The Securities and Exchange Board of India grants AMC registration / approval for starting an AMC in India in accordance with the SEBI (Mutual Funds) Regulations, 2026.
Hey there, I'm Dushyant Sharma. With the extensive knowledge I've gained in past 8 years, I have been creating content on various subjects such as banking, insurance, finance and all the important registration and licensing processes for various companies. I'm here to help everyone with my expertise in these areas through my articles.
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