Nuvama Wealth Management Limited (NWML) has announced significant strategic moves to expand its financial services portfolio and strengthen its leadership team. The company's Board of Directors has approved several key decisions that are set to shape its future growth trajectory.

New Subsidiary for Mutual Fund Trustee Services

NWML's Board has given the green light for the incorporation of a wholly owned subsidiary in India, to be named Nuvama Mutual Fund Trustee Services Limited. This new entity will focus on mutual fund trustee services and other financial activities. The company plans to invest Rs. 50.00 lakh for 100% shareholding in the new subsidiary, subject to approval from the Ministry of Corporate Affairs and other relevant statutory authorities.

This move comes on the heels of NWML receiving approval from the Securities and Exchange Board of India (SEBI) to act as a sponsor for the proposed Nuvama Mutual Fund. The company is now poised to launch schemes under the Mutual Fund category, including Specialized Investment Funds, in accordance with SEBI regulations.

Key Leadership Appointment

In a significant addition to its leadership team, NWML has appointed Dr. Dinesh Soni as Group Head - Compliance, effective October 1, 2025. Dr. Soni brings nearly three decades of experience in governance and regulatory operations to the role. His most recent position was as Managing Director & CEO of NSE Administration & Supervision Ltd., where he played a crucial role in enhancing regulatory frameworks and compliance engagement across the industry.

Dr. Soni's extensive experience includes leadership roles at the National Stock Exchange (NSE), where he spearheaded initiatives in risk-based supervision and innovative compliance models. His background also includes work with regulatory bodies such as the Pension Fund Regulatory and Development Authority (PFRDA) and the Forward Markets Commission.

Employee Stock Appreciation Rights Grant

The company's Nomination and Remuneration Committee has approved the grant of 5,000 Employee Stock Appreciation Rights (ESARs) to eligible employees under the 'Nuvama Wealth Employee Stock Appreciation Rights Plan 2024'. These ESARs, once vested and exercised, will entitle holders to receive appreciation for a specified number of equity shares of the company. The exercise period for these rights is set at 2 years from the vesting date.

Market Implications

These strategic moves by Nuvama Wealth Management Limited signify its intent to diversify its financial services offerings and strengthen its position in the mutual fund sector. The establishment of a new subsidiary for mutual fund trustee services, coupled with SEBI's approval for sponsoring a mutual fund, positions NWML to capitalize on the growing demand for diverse investment products in India.

The appointment of Dr. Dinesh Soni as Group Head - Compliance underscores the company's commitment to robust governance and regulatory compliance, which is crucial in the highly regulated financial services sector.

As NWML embarks on this expansion, investors and market watchers will be keen to observe how these initiatives translate into growth and value creation for the company in the coming years.

Nuvama Wealth Management Limited has achieved a significant milestone in its expansion into the mutual fund industry. The company announced on October 1, 2025, that it has received approval from the Securities and Exchange Board of India (SEBI) to act as a sponsor for the proposed Nuvama Mutual Fund.

Key Highlights

• SEBI grants approval to Nuvama Wealth Management to sponsor Nuvama Mutual Fund
• Approval enables the launch of mutual fund schemes, including specialized investment funds
• Final registration for the mutual fund is subject to fulfilling SEBI's stipulated requirements

Approval Details

The approval, conveyed through a SEBI letter dated October 1, 2025, marks a crucial step forward for Nuvama Wealth Management. This development allows the company to establish and sponsor the Nuvama Mutual Fund, opening doors to launch various mutual fund schemes. These schemes will include specialized investment funds, all of which will be regulated under the SEBI (Mutual Funds) Regulations, 1996.

Background and Next Steps

Nuvama Wealth Management had initially applied for this approval in January 2025, demonstrating the company's strategic planning and commitment to expanding its financial services portfolio. While this approval is a significant achievement, it's important to note that the final registration for the mutual fund is still pending. SEBI will grant the final approval for mutual fund registration once Nuvama Wealth Management fulfills all the requirements outlined in the approval letter.

Company Statement

In its communication to the stock exchanges, Nuvama Wealth Management expressed its pleasure in receiving the SEBI approval. The company stated, "We are pleased to inform that SEBI vide letter dated October 1, 2025, has granted approval to the Company to act as the sponsor and set up the proposed Nuvama Mutual Fund."

Market Implications

This development positions Nuvama Wealth Management to potentially become a significant player in India's growing mutual fund industry. The ability to sponsor and launch mutual fund schemes, including specialized investment funds, could provide the company with new revenue streams and enhance its competitive position in the financial services sector.

As Nuvama Wealth Management works towards fulfilling SEBI's requirements for final mutual fund registration, market participants and potential investors will likely keep a close watch on the company's progress and future announcements regarding its mutual fund operations.