Former Axis Bank head PJ Nayak has joined the mutual fund arm of Mumbai based Motilal Oswal Financial Services. He will join Motilal Oswal AMC (MOAMC) as non-executive chairman and will also play the role of an active director of the mutual fund, which will be launched soon. He will head a four-member team which includes Raamdeo Agarwal, Kanu Doshi and Lawrence Haber, reports Economic Times.
Nayak left Axis Bank following its board’s decision to appoint an ex-ICICI executive Shikha Sharma as managing director, overruling his preference for an insider for the same post. He has worked for nine years in the company as managing director and chief executive and led the bank to become the third-largest private sector bank in the country.
Nayak has also recently joined US based buyout firm Advent International as an advisor. He joined Advent in July 2009, after his resignation from Axis board.
Nitin Rakesh, CEO of Motilal Oswal Asset Management Company stated that the appointment of Nayak will validate Motilal Oswal’s seriousness in the rapidly-growing domestic mutual fund industry, which has seen a clutch of new players waiting in the wings.
MOAMC had received an in-principle approval for launching operations from market regulator Sebi nearly a year ago and is likely to launch its operations by next financial year, subject to the final go-ahead from Sebi.
Reports suggest that only a third of the country’s total savings is parked with the mutual fund industry, and nearly 25 companies are awaiting Sebi approval to start mutual fund operations in near term.