Mumbai, July 30: In tune with the ongoing consolidation in the mutual fund industry, the Rs 47,000-crore Tata group is buying out Canadian partner TD Asset Management's stake in its mutual fund arm ó Tata TD Asset Management Private Ltd.
The Tatas groupís holding will go up to 100 per cent after it buys out its partnerís 50 per cent stake in the mutual fund.
In a joint statement, the Tatas and TD Asset of Canada said: ďThe Tata group has agreed in principle to increase its stake in Tata TD Asset Management to 100 per cent, subject to receipt of various statutory approvals."
TD Asset Management will continue to provide technical support in the fund management area in the MF business. The two companies have also decided to close down Tata TD Securities, their stock brokerage business.
However, the brokerage house will retain a significant part of mutual fund distribution business, the release added. In the brokerage business, which is under the Tata TD Waterhouse brand, 50.1 per cent of the stake is held by the Tata group and the rest by TD Bank Financial group.