HSBC MF Seeks Sebi Nod To Launch Three Maiden Schemes

New Delhi, June 28: | Updated: Jun 29 2002, 05:30am hrs
London-based HSBC Group is all set to kick-start its mutual fund (MF) operations in India with its Indian arm seeking the Securities and Exchange Board of India’s (Sebi) permission to launch three maiden schemes. HSBC MF plans to initially introduce a growth scheme, an income scheme and a liquid fund.

The MF will hit the market with these schemes as soon as it gets the Sebi nod, chief operating officer Sanjay Prakash of HSBC MF told The Financial Express.

The open-ended equity scheme seeks to generate long-term capital growth from a diversified portfolio mainly consisting of medium and large companies. The growth scheme offers dividend as well as growth plan. The fund has a minimum application of Rs 5,000 and further investment is multiples of Re one. The scheme will charge an initial expense of 2 per cent.

The income scheme offers two plans — short-term and investment plan — which seeks to generate regular returns through a diversified portfolio of fixed income securities. The short-term plan is being designed to target investors with a short- to medium-term investment horizon.

The investment plan is for those investors with a medium- to long-term investment perspective. While the short-term plan has a minimum investment of Rs 1 lakh, the investment plan has Rs 5,000. The liquid fund has a minimum investment of Rs 1 lakh and further investment is in multiples of Re one.

The sponsor of HSBC MF is HSBC Securities and Capital Markets (India) Pvt Ltd which holds 75 per cent of the paid up equity of the asset management company (AMC). The board of trustees has four independent trustees and two other trustees who are associates of the sponsor. The chairman of the board is NP Gidwani and the five other trustees are Alka Bharucha, Christopher Ewin, Nadir Godrej, EA Kshirsagar and Dilip J Thakkar.

HSBC Group, one of the largest banking and financial services organisations in the world, had total assets of $696 billion at the end of 2001. HSBC Asset Management, which is the core global investment management business of the group with thirteen investment teams across the globe, has funds under management of $122.6 billion as on December 31, 2001.

The MF was registered with Sebi on May 27, 2002. The group’s plan to start asset management services in India has been hanging fire for almost a year now, according to Value Research CEO Dhirendra Kumar. HDFC and Grindlays, other financial service providers, have proved be major success stories in the MF industry.