Algo trading firm AlphaGrep gets Sebi's in-principle nod to launch mutual funds

Mumbai-based AlphaGrep Securities, known for its data-driven approach to trading and investing, has received an in-principle approval from the Securities and Exchange Board of India (Sebi) to set up a mutual fund, said the company in a statement. 

While not yet the final regulatory clearance, this approval is widely seen as a significant milestone toward launching its asset management business for the broader retail and institutional investor base.

The final registration and operational launch are subject to the fulfilment of Sebi’s prescribed requirements.

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The mutual fund operations will be managed under AlphaGrep Investment Management (AGIM), which already oversees more than ₹2,000 crore in assets and serves over 500 clients. AGIM currently manages two Sebi-registered Category III AIFs (long-short), a long-only PMS, and an outbound CAT III AIF domiciled at GIFT City.

The new mutual fund business will operate under the same quantitative philosophy as AlphaGrep— combining advanced mathematical models, machine learning, and a disciplined approach to portfolio construction. The firm plans to offer a range of quant-driven actively managed products catering to diverse investor needs, including equity and hybrid strategies.

Also read: Sebi engages with venture capital funds directly to smoothen transition to AIF

“This development (Sebi's approval) reinforces our long-term vision of offering investors access to differentiated, systematic and quant-driven investment solutions grounded in technology and data science,” said Bhautik Ambani, chief executive officer at AlphaGrep Investment Management.

Other players join the MF bandwagon

Recently, Jio Financial Services informed the exchanges that Jio BlackRock Investment Advisers has received approval from the stock markets regulator to operate as an investment adviser.

Bengaluru-based financial advisory and PMS provider Capitalmind Financial Services, founded by Deepak Shenoy, has also recently received the final approval from capital market regulator Sebi to offer mutual funds to investors.