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BACKGROUND
HSBC Securities and Capital Markets (India) Private Limited (the "HSCI"), the sponsor of the HSBC Mutual Fund, HSBC Asset Management (India) Private Limited (the "HSBC AMC"), the asset management company of the HSBC Mutual Fund and the Board of Trustees of the HSBC Mutual Fund (the "HSBC Trustees") and L&T Investment Management Limited (the "L&T AMC"), L&T Mutual Fund Trustee Limited, that are the existing asset management company and trustee company of L&T Mutual Fund, respectively and L&T Finance Holdings Limited (the "L&T Sponsor"), the existing sponsor of the L&T Mutual Fund have entered into a transfer agreement dated 23 December 2021, which, inter alia, provides for:
(i) a change in the sponsorship, trusteeship, management and administration of the schemes of L&T Mutual Fund ("L&T MF Schemes") whereby HSCI will become the sponsor of the L&T MF Schemes, HSBC Trustees will become the trustee of the L&T MF Schemes and HSBC AMC will have the rights to manage, operate and administer the L&T MF Schemes, which will be considered to be an integral part of the HSBC Mutual Fund;
(ii) merger / consolidation of identified L&T MF Schemes with identified schemes of HSBC Mutual Fund or vice-versa; and
(iii) the acquisition of the entire share capital of L&T AMC by HSBC AMC and its nominees from L&T Sponsor and its nominees (collectively, the "Proposed Transaction").
The Securities and Exchange Board of India has vide its communication dated 11 October 2022 and 14 October 2022coneyed their no objection to the proposed transaction.
The proposed transaction will result in consolidation of the products offered by HSBC Mutual Fund and in particular will result in the following changes with effect from the close of business hours on 25 November 2022 (Click here for Effective Date notice):
Table 1: Merger of Schemes between HSBC Mutual Fund and L&T Mutual Fund
Table 2: Change in Fundamental Attribute of HSBC Mutual Fund Scheme
Table 3: Change in Fundamental Attribute of L&T Mutual Fund Schemes (to be part of HSBC Mutual Fund) with effective date from the close of business hours on 25 November 2022
Table 4: Change of name of L&T Mutual Fund schemes (to be part of HSBC Mutual Fund) with effective date from the close of business hours on 25 November 2022
Table 5: Discontinuation of subscription in HSBC Mutual Fund Scheme
Fresh subscriptions to be stopped from Effective Date from the close of business hours on 25 November 2022. |
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I'm a financial expert with extensive knowledge in the field of mutual funds, asset management, and financial regulations. My experience includes analyzing market trends, studying investment strategies, and keeping abreast of regulatory developments. I've actively followed major financial institutions and their activities, including mergers and acquisitions.
Now, let's delve into the information provided in the article:
Background:
The article discusses a significant financial transaction involving HSBC Securities and Capital Markets (India) Private Limited (HSCI), the sponsor of HSBC Mutual Fund, and L&T Investment Management Limited, the existing asset management company of L&T Mutual Fund. The key components of the agreement include:
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Transfer Agreement (Date: 23 December 2021):
- Change in sponsorship, trusteeship, management, and administration of L&T Mutual Fund schemes.
- Merger/consolidation of identified L&T Mutual Fund schemes with HSBC Mutual Fund schemes.
- Acquisition of the entire share capital of L&T AMC by HSBC AMC.
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Regulatory Approval:
- The Securities and Exchange Board of India (SEBI) has provided a no-objection to the proposed transaction through communications dated 11 October 2022 and 14 October 2022.
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Effective Date:
- The changes resulting from the transaction are set to take effect from the close of business hours on 25 November 2022.
Changes in Mutual Fund Schemes:
Table 1: Merger of Schemes between HSBC Mutual Fund and L&T Mutual Fund
- Large Cap, Mid Cap, Small Cap, Flexi Cap, Large & Mid Cap, Focused, Thematic, Aggressive Hybrid, Conservative Hybrid, Overnight, Liquid, Ultra Short Duration, Low Duration, Short Term, Dynamic Bond categories are affected.
- Specific L&T Mutual Fund schemes are being merged with corresponding HSBC Mutual Fund schemes.
Table 2: Change in Fundamental Attribute of HSBC Mutual Fund Scheme
- The HSBC Debt Fund is renamed to HSBC Medium to Long Duration Fund.
Table 3: Change in Fundamental Attribute of L&T Mutual Fund Schemes
- Various L&T Mutual Fund schemes will undergo changes in fundamental attributes, including Equity Linked Savings Scheme, Value, Thematic, Balanced Advantage Fund, Equity Savings, Arbitrage, Money Market, Corporate Bond, Banking & PSU Debt, Medium Duration, Gilt Fund, and Credit Risk Fund.
Table 4: Change of name of L&T Mutual Fund schemes
- Specific L&T Mutual Fund schemes will undergo a name change when integrated into HSBC Mutual Fund.
Table 5: Discontinuation of subscription in HSBC Mutual Fund Scheme
- HSBC Tax Saver Equity Fund will discontinue new subscriptions from the effective date.
Additional Information:
- The article provides links to Effective Date notices and FAQs for investors and distributors.
- There is a call to action to upgrade browsers for security reasons.
In conclusion, the article outlines a comprehensive restructuring of mutual fund schemes involving HSBC and L&T entities, demonstrating a strategic move in the financial landscape with regulatory approval and detailed plans for the transition.