UBS is thought likely to re-enter the race for Standard Chartered’s Indian mutual funds unit, following the Reserve Bank of India's decision to grant a full banking licence to the Swiss bank. But it might have to pay much more because valuations have shot up. UBS Global Asset Management allowed the terms of its $120 million purchase of Standard Chartered Asset Management to lapse last December after it failed to secure central bank approval for the proposed deal. Standard Chartered is currently in the final stages of the new bidding process. According to a New Delhi Television report, sources say seven bidders have been shortlisted from a list of 40 and invited to submit financial bids. The bidders include Goldman Sachs, Lehman Brothers and Emirates Bank. Standard Chartered's asset management business has grown significantly since the previous deal with UBS was inked in January 2007, presently ranking among the top three in terms of assets under management. High valuations are also being commanded by other industry players like UTI MF, which is likely to launch an IPO soon. Sources also indicated that bidders are offering to pay a price as high as 7 to 8 per cent of assets under management. Some bidders are even willing to go as high as 12 per cent of AUM. This is significantly higher than the 4.5 per cent of AUM, which UBS had agreed to pay in its previous sale agreement. Standard Chartered refused to comment on the sale process.