Mumbai, Aug 24 (IANS) Bajaj Finserv has said that it has received an in-principle approval from SEBI to sponsor a mutual fund.

Following the approval, it will now set up an asset management company.

It has received the in-principle approval from the capital market regulator through a letter dated August 23, 2021, Bajaj Finserv said in a regulatory filing.

"Accordingly, the company would be setting up an Asset Management Company and the Trustee Company, directly or indirectly i.e., itself or through its subsidiary in accordance with applicable SEBI regulations and other applicable laws," it said.

Shares of the company surged on Tuesday. Around 10.5 a.m., shares of Bajaj Finserv on the BSE were trading at Rs 15,865.20, higher by Rs 597 or 3.91 per cent from its previous close.

--IANS rrb/sn/bg