Bad news for NRIs! US, Canada residents can’t invest as HSBC takes over L&T MF schemes | The Financial Express

Bad news for NRIs! US, Canada residents can’t invest as HSBC takes over L&T MF schemes

It’s a setback for NRI and PIO investors residing in the United States (US) and Canada as they can no longer invest in the mutual fund (MF) schemes of L&T AMC.

Bad news for NRIs! US, Canada residents can’t invest as HSBC takes over L&T MF schemes
As per the Scheme Information Documents of HSBC MF Schemes, HSBC AMC does not allow the persons residing in US and Canada to invest in any of its schemes.

It’s a setback for NRI (Non Resident Indians) and PIO (Persons of Indian Origin) investors residing in the United States (US) and Canada as they can no longer invest in the mutual fund (MF) schemes of L&T AMC (Asset Management Company).

As HSBC gets the rights to manage, operate and administer the existing L&T MF schemes after HSBC Securities and Capital Markets (India) Private Limited (HSCI) fully acquired L&T Investment Management Limited (LTIM), even the ongoing investments through SIP (systematic investment plan) and STP (systematic transfer plan) of existing investors residing in US and Canada get discontinued from November 24, 2022.

This is because the US and Canada residents were allowed to invest in the MF schemes of L&T, while HSBC doesn’t allow the residents of the two countries from investing in its schemes.

As per the Scheme Information Documents of HSBC MF Schemes, HSBC AMC does not allow the following persons/ entities to invest in any of its schemes:

  • United States Person as defined under the Laws of the United States of America, including, without limitation, the rules and regulations promulgated by the US Securities and Exchange Commission and the US Commodity Futures Trading Commission; or is a person who has elected to be treated as a US tax resident for US federal income tax purposes; and
  • Persons residing in Canada.

In accordance with this, with effect from the effective date – that is November 24, 2022 – HSBC AMC shall not accept any transactions requests (other than non-financial transactions and redemptions) from above-stated categories of unit holders. Points to be noted that there shall be no restriction for such categories of unitholders from redeeming their investments.

It is however not clear for how long the existing investors from the US and Canada can stay invested after the folios of erstwhile L&T MF schemes get transferred to HSBC AMC.

Get live Share Market updates and latest India News and business news on Financial Express. Download Financial Express App for latest business news.

First published on: 26-11-2022 at 05:36:44 pm
Photos
8 Photos
Miss Universe 2023: USA’s R’Bonne Gabriel crowned in a glittering ceremony: See Stunning Photos
7 Photos
Nepal plane crash: Flight with 72 onboard crashes near Pokhara International Airport – Images
7 Photos
Business heads run at Mumbai Marathon, more than 50,000 people participate in event – See pictures here