Alliance Cap8217;s conversion plan approved

NEW DELHI, AUG 10: The Foreign Investment Promotion Board FIPB has, on Saturday, approved Alliance Capital Management Corporation8217;s proposal to convert the board of trustees of its mutual fund in India to a trustee company with 100 per cent foreign equity.

The US investment banker, the sponsor of Alliance Capital Mutual Fund in India, had put in an application before the FIPB for raising the equity in the new trustee company to 100 per cent. The company had mentioned in its application that the trustee company does not intend to carry out any non-banking financial services.

To gain an entry into the Indian market, the US company had initially set up a trust with an eminent board of trustees.As per the new Securities amp; Exchange Board of India8217;s Mutual Fund Regulations, 1995, existing trustees can now form a trustee company.