HSBC gets green light from SEBI to acquire L&T Investment Management

HSBC Asset Management (India) Private Ltd, an indirect wholly owned subsidiary of HSBC Holdings plc, has received approval from the Securities and Exchange Board of India (SEBI) to acquire L&T Investment Management Ltd, subject to certain conditions and approval.

Following completion of the acquisition, HSBC will merge the operations of L&T Investment Management with its existing asset management business, which has an average assets under management of ₹13,620 crore as of September 2022.

L&T Investment Management is a wholly owned subsidiary of L&T Finance Holdings Ltd and the investment manager of L&T Mutual Fund.

With average assets under management of ₹71,703 crore and over 22 lakh active folios as of September 2022, it is currently the 14th largest mutual fund management company.

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“The strengthening of HSBC’s asset management business in India will enhance its ability to meet the wealth needs of its clients in India as well as those of its growing non-resident Indian clientele across the world,” HSBC said in a statement. a statement.

Mutual fund schemes operated by L&T Mutual Fund will be transferred, merged or consolidated with identified schemes of HSBC Mutual Fund or vice versa. Also, the sponsorship, trusteeship, management and administration of L&T Mutual Fund will be changed accordingly, he said.

In December 2021, the Indian asset management unit of HSBC Holdings Plc had announced the takeover of the mutual fund unit of L&T Finance Holdings Ltd for ₹3,191 crore to bolster its wealth management business. The proposed deal got clearance from the Competition Commission of India (CCI) in March 2022.

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