Mutual Fund: What options investors have as L&T MF schemes move to HSBC? | The Financial Express

Mutual Fund: What options investors have as L&T MF schemes move to HSBC?

SEBI on October 14, 2022 given approval to HSBC Securities and Capital Markets (India) Private Limited (HSCI) to fully acquire L&T Investment Management Limited (LTIM).

Mutual Fund: What options investors have as L&T MF schemes move to HSBC?
HSBC AMC will have the rights to manage, operate and administer the existing L&T MF schemes. (Reuters/File)

Following the approval of the Securities and Exchange Board of India (SEBI) on October 14, 2022 given to HSBC Securities and Capital Markets (India) Private Limited (HSCI) to fully acquire L&T Investment Management Limited (LTIM), HSBC AMC will have the rights to manage, operate and administer the existing L&T MF schemes.

If you are an investor of any of the existing MF schemes of L&T and don’t want HSBC to manage the scheme(s), you may redeem your investments till November 21, 2022 (before the cut-off time) to take the money out.

Otherwise, if you are comfortable with the change in the sponsorship, trusteeship, management and administration of the scheme(s), you may stay invested. For continuation of fresh investments through Systematic Investment Plan (SIP) and Systematic Transfer Plan (STP) beyond November 24, 2022, however, you need to give your consent.

Here are some of the provisions:

  • As per the SEBI Regulations, 30 days ‘Exit Option Period’ is being provided to the existing unitholders of HSBC and L&T Mutual Fund investors who are impacted by the consolidation of schemes or changes in fundamental attributes from October 21, 2022 to November 21, 2022 (both days inclusive and up to 3.00 pm on November 21, 2022). However, no action is required if they wish to stay invested with their current investments.
  • The scheme L&T Tax Advantage Fund will be renamed as HSBC ELSS Fund after November 24, 2022. Further, the fresh subscription in HSBC Tax Saver Fund will be discontinued with effect from November 24, 2022. In order to continue the existing physical Systematic Investment Plan (SIP) and Systematic Transfer Plan (STP) under HSBC Tax Saver fund, the investors would require to submit the duly signed consent letter for directing future SIP / STP installment from HSBC Tax Saver Fund to L&T Tax Advantage Fund (will be renamed as HSBC ELSS Fund) post November 24, 2022.
  • Fresh subscription (including installments from existing SIPs/STPs) from US and Canada citizens will be discontinued with effect from November 24, 2022.

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First published on: 18-11-2022 at 13:57 IST