SEBI Approves Mutual Fund License for Carnelian Asset Management

The Securities and Exchange Board of India (SEBI) has officially granted a mutual fund license to Vikas Khemani-led Carnelian Asset Management & Advisors. This regulatory approval marks Carnelian’s entry into India’s rapidly expanding mutual fund industry.

This significant development enables Carnelian to broaden its investment solutions beyond its current portfolio management services (PMS), alternative investment funds (AIFs), and offshore strategies. The firm is now positioned to offer a comprehensive suite of active and passive strategies across equity, debt, and hybrid asset classes to a wider base of retail investors.

Carnelian’s Established Footprint

As of June 30, 2026, Carnelian has built a substantial presence in the financial sector, managing significant assets and serving a broad client base.

• Assets under management (AUM) across existing businesses exceeded Rs 18,300 crore.
• The firm serves over 8,600 clients.
• Its operations are supported by a network of more than 710 partners nationwide.

Vikas Khemani described the SEBI approval as a major milestone, underscoring the firm’s seven-year commitment to developing an investment platform anchored in research, discipline, and strong governance. He noted that this license will allow Carnelian to extend its proven capabilities to a much larger investor base across India.

Expanding India’s Investment Landscape

Khemani further elaborated on the future growth trajectory of the mutual fund industry, anticipating its next phase of expansion to stem from deeper market penetration. This growth is expected to move beyond major metropolitan cities, driven by increasing financial awareness and participation from smaller towns and rural India.

This broader reach is crucial for integrating more households into the formal financial system and enhancing access to diverse investment solutions. The Indian mutual fund industry itself is experiencing robust retail participation, reflecting a growing appetite for structured investment products.

• Industry assets under management (AUM) surpassed Rs 82 lakh crore.
• The sector records over 20 crore folios.
• Nearly 10 crore active systematic investment plan (SIP) accounts are operational as of June 30, 2026.

The entry of new players like Carnelian is set to contribute meaningfully to India’s evolving savings and investment ecosystem, fostering greater financial inclusion and diversification for investors.