For the Rs.2,775 crore (US$500 million) deal, involving a sale of ING Investment Management’s assets in 10 Asian countries, including the Rs.1,396 crore Indian mutual fund assets, ING has introduced a new condition that will disqualify Indian asset managers, said two people with knowledge of the situation, quoted by the online publication.

“This (new) condition has been inserted to ensure that the existing workforce of ING’s Asia business is retained by the acquirer of the group’s Asian assets. It will restrict Indian AMCs from entering the bidding process,” said the person cited.

Frontrunners on the deal currently include Singapore's United Overseas Bank Group and Australia's Macquarie Group.

ING is selling its Asian asset management and insurance businesses for at least US$4.5 billion, to repay the rescue package it received from the European Central Bank during the global financial crisis in 2008. 

ING Investment Management (India) functions through a three-way joint venture, with the Dutch ING Group holding at least 47 per cent, Kirti Equities with around 15 per cent, and the remainder held by Rajan Raheja-led Hathway Investments.