Kolkata, Feb 10 (IANS) Peerless Funds Management Company Ltd (PFMCL) is scouting for a foreign partner to further strengthen the business, a company official said here Tuesday.

PFMCL, wholly owned subsidiary of Kolkata-based Peerless General Finance and Investment Company (PGFIC), was in talks with foreign entities to divest stake in its recently launched mutual fund arm.

"We will induct a foreign partner who suits the strategic blueprint of the company," Peerless General Finance and Investment Company director (financial products distribution) Jayanta Roy said.

"Several foreign companies have shown interest and we are in talks to off-load a percentage of stake with retaining majority control and management with us," PFMCL chairman A.C. Chakrabortti said.

Peerless announced the commencement of the mutual fund business Tuesday. It to launch two debt-oriented funds (liquid and ultra short-term funds) for institutional investors this month.

PFMCL received regulatory approval in December from the Securities and Exchange Board of India to launch its mutual fund business.

The company has already filed schemes like Liquid Fund, Savings Fund, Short Term Fund and Ultra Short Term Fund with the regulator.

The company, however, is yet to receive approval for any of these schemes, he said.

"We expect to achieve clearance for our liquid and ultra short term funds from SEBI by Feb 17," Chakrabortti said.

All the schemes currently filed are debt schemes and Peerless plans to launch equity schemes in April, he said.

The company hopes to break even in the next four years, said Chakrabortti.

The asset management company has been set up with a seed capital of Rs.50 crore and plans to invest Rs.8,000 crore in the business in total, Roy said without disclosing the timeframe of investment.