Indiabulls Financial Services Ltd on Friday said it has received approval from the Securities and Exchange Board of India to start mutual fund operations.

The company is in the process of setting up an asset management company and a trustee company, a statement said.

Reserve Bank of India had recently approved Indiabulls' proposal to start non-banking financial services (NBFC) business.

The licence will be utilised to set up a company that will launch products targeting the small and medium enterprises sector. The business will be called Indiabulls Commercial Credit (ICC) and will start in a couple of months.