Almost 23 companies are waiting for an approval from SEBI to enter the MF space which is already overcrowded with 37 players managing assets over Rs7 lakh crore

As many as 23 companies are awaiting an approval from the market regulator Securities and Exchange Board of India (SEBI) to enter the mutual fund (MF) space, which is already overcrowded with 37 players managing assets over Rs7 lakh crore, reports PTI.

Companies have filed for regulatory approvals, which are being processed by SEBI, sources said.

Some of the Indian companies whose applications are with the market regulator include Indiabulls Ltd, Future Finance Ltd, SREI Infrastructure Finance Ltd and ASK Investment Holdings Pvt Ltd.

Besides these entities, brokerage firms like India Infoline, Prime Securities Ltd, Karvy Stock Broking Ltd and Jaypee Capital Services Ltd have also sought licences from SEBI for asset management.

Two state-run banks—Union Bank of India and IDBI Bank—are also planning to venture into the asset management space and have approached the regulatory authority.

While IDBI Bank had filed an application for a licence in June last year, Union Bank had submitted its papers in February 2009.

Meanwhile, IDBI Bank and the country's third largest private sector lender Axis Bank have already got the regulator's approval to start an asset management business.

Union Bank has set up an asset management firm with KBC Group of Belgium. The joint venture, in which the state-run lender owns 51% stake, expects to start operations during the current fiscal.