Ashika Credit Capital has received in-principle approval from the Securities and Exchange Board of India (SEBI) to act as a sponsor and establish a mutual fund in India. This regulatory milestone enables the financial services group to expand its operations into the country's growing asset management sector.

Regulatory Approval Details

The SEBI clearance allows Ashika Group to proceed with forming an Asset Management Company (AMC) and initiate preparatory steps for launching mutual fund schemes. However, the final launch remains contingent upon fulfilling SEBI's registration requirements and meeting all specified conditions.

Business Expansion Strategy

With this approval, Ashika Group plans to enter India's asset management segment, complementing its existing presence across capital markets and financial services. The group currently operates diverse businesses spanning multiple financial sectors.

The company's existing operations include:

• Retail and institutional broking
• Investment banking services
• Research advisory
• Global family office services
• Alternative asset management
• Private equity

Proposed Fund Offerings

According to the company, the proposed mutual fund will offer a range of investment schemes across various categories. These offerings will be supported by in-house research capabilities and comprehensive risk management frameworks. The group expects to announce further details regarding fund offerings, implementation timelines, and leadership appointments following final regulatory approvals.

Management Commentary

Pawan Jain, Chairman and Managing Director of Ashika Group, described the approval as an institutional milestone for the company. He emphasized that this development enables the group to expand its participation in India's asset management ecosystem.

Industry Context

India's mutual fund industry has witnessed continued growth with new market entrants in recent years. This expansion has been driven by steady increases in domestic investor participation and growing assets under management across the sector.

Ashika Credit Capital Ltd has achieved a significant regulatory milestone by securing in-principle approval from the Securities and Exchange Board of India (SEBI) to sponsor a mutual fund. The approval, granted through SEBI's letter dated December 30, 2025, marks the company's strategic entry into the asset management business.

Regulatory Approval Details

The company received the formal approval under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This approval follows a structured regulatory process, with the company having previously submitted intimations to the stock exchange on February 12, 2025, and June 19, 2025, demonstrating a methodical approach to this business expansion.

Implementation Framework

Following the SEBI approval, Ashika Credit Capital will establish two key entities to operationalize its mutual fund business:

• Asset Management Company: To manage the mutual fund operations and investment strategies
• Trustee Company: To oversee fiduciary responsibilities and regulatory compliance

Both entities will be established in strict accordance with applicable SEBI regulations and other relevant laws governing the mutual fund industry in India.

Strategic Significance

This regulatory approval represents a substantial expansion of Ashika Credit Capital's financial services portfolio. The move into mutual fund sponsorship allows the company to diversify its revenue streams and tap into India's growing asset management market. The structured timeline of regulatory submissions indicates careful planning and preparation for this business vertical.

Corporate Communication

The approval was formally communicated to BSE Ltd by Company Secretary and Compliance Officer Anju Mundhra (FCS: 6686) on December 30, 2025. The disclosure ensures transparency with stakeholders and compliance with listing obligations under SEBI regulations.