According to a top official in Kotak Mahindra Asset Management Company Ltd, the group will not offer any equity stake in its proposed entity for life insurance business in the domestic market.

``In the case of non-life insurance foray, Chubb group of the US will be offered some equity participation. The $2-billion Chubb group had already signed a memorandum of understanding with Kotak Mahindra on this account,'' he added.

Worldwide Chubb group operates in four areas -- financial services, hi-tech, power and infrastructure and personnel lines like insurance.

The insurance foray will mark yet another diversification of the Kotak Mahindra group in India. The group will offer insurance coverage in the areas like accident, theft and fire in the non-insurance sector. However, modalities for the purpose are stillbeing worked out.

The group has also decided to set up a representative office in New York shortly. In addition to 30 offices in the domestic market, it has offices in Dubai, Mauritius and London.

The group currently offers financial services including loans, lease and hire purchase, consumer finance, car finance, investment banking, stock broking and primary market distributions of equity and debt products and business information services.

Kotak Mahindra Asset Management Company Ltd on Monday announced the launch of its two mutual fund schemes which will open on December 11. The Funds KGilt scheme allows investors to put their funds in government securities through these units, while the K30 scheme aims at generating growth by investing in select stocks.