The group has already entered into a tieup with IDBI for the insurance sector. When contacted, officials at ING Group confirmed that an application had been filed with Sebi for setting up an asset management company.

However, they ruled out any tieup with IDBI Mutual Fund to kickstart their mutual fund operations in the country. ``There has been no talk of a tieup with IDBI Asset Management and they would like to go it alone in the fund segment,'' said sources.

Sources say it will take some time for the AMC to begin operations. Once the approval comes from Sebi, the AMC is expected to immediately tap the market. ``The group is in the process of deliberating thetype of mutual fund scheme that can be launched in such a market. A lot depends on how the market moves in the next few months,'' said sources.

ING Group is the second largest player in the financial sector in Europe. It manages funds worth $250 billion. The group, whose operations are spread across 60 countries across the globe, currently manages a $250 million private equity fund in India.

It remains to be seen whether the asset management arm of the ING Group will float a 100 per cent subsidiary in the country. According to the norms, a foreign player has to invest a minimum of Rs 50 crore to launch a wholly owned AMC. In case the investment is below Rs 50 crore, a minimum of 25 per cent has to be offloaded to a domestic player.

``The number of asset management companies is growing and they are being launched by both domestic and global financial majors. This is a healthy trend and clearly demonstrates the long-term potential for the mutual fund industry in the country although there are hiccups inthe short-term due to depressed markets,'' said an analyst.

In the last one month, Kotak and Dundee Mutual Funds have launched their maiden funds while IL&FS AMC is planning to hit the market with its maiden offerings. Besides, 20th Century-Zurich has lined up a couple of income funds to tap the market. These will be the first funds from the AMC after Zurich Financial acquired a majority stake in the mutual fund in mid-1997.

``The number of AMCs is growing and they are being launched by both domestic and global financial majors. This is a healthy trend and clearly demonstrates the long-term potential for the mutual fund industry although there are hiccups in the short-term due to depressed markets,'' said an analyst. In the last one month, Kotak and Dundee Mutual Funds have launched their maiden funds while IL&FS AMC is planning to hit the market soon. Besides, 20th Century-Zurich has also lined up a couple of funds for launch.