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.

Ashika Credit Capital Limited has announced the successful incorporation of a new wholly-owned subsidiary, marking a strategic expansion into the insurance sector. The company disclosed this development through a regulatory filing dated December 12, 2025, following its earlier intimation in November 2025.

Subsidiary Incorporation Details

The company has established Ashika Global Insurance Advisors Private Limited (AGIAPL) as its wholly-owned subsidiary, replacing the earlier proposed wealth management entity. The key details of the incorporation are presented below:

Business Scope and Operations

AGIAPL has been incorporated to carry out insurance-related activities and services as a Corporate Agent (Composite). The subsidiary is yet to commence business operations and currently reports nil turnover. The company's operations will be subject to receipt of necessary approvals and registrations from concerned regulatory authorities.

Regulatory Requirements

The subsidiary will require approval from the Insurance Regulatory and Development Authority of India (IRDAI) along with other necessary regulatory clearances before commencing operations. The disclosure has been made in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Structure

Strategic Implications

This incorporation represents a shift from the company's earlier plan to establish a wealth management subsidiary to focusing on insurance services. As an NBFC, Ashika Credit Capital considers this acquisition as part of its ordinary course of business. All future transactions with the wholly-owned subsidiary will be conducted on an arm's length basis, ensuring regulatory compliance and transparency.

The move into insurance services through AGIAPL demonstrates the company's strategy to diversify its financial services portfolio and capitalize on opportunities in the insurance sector.