News Update

L&T Finance Holdings In Talks With HSBC To Sell Its MF Arm: Report

• ByStartupStory     |    August 30, 2021

L&T Finance is in advanced talks with HSBC to sell its mutual fund (MF) arm, according to news reports. According to a report by Moneycontrol, the sale of L&T Mutual Fund has been in the works for a while. Last year, private equity giant Blackstone emerged as the frontrunner for a Rs 3,200- crore acquisition of L&T Mutual Fund, but the deal closure would hinge upon approval from the capital markets regulator, which generally frowns upon private equity ownership of mutual funds.

Market experts believe Securities and Exchange Board of India’s (Sebi) approval might prove to be a problem. “Limited life funds are not allowed to own mutual fund AMCs in India by the market regulator,” said Sandeep Parekh, managing partner, Finsec Law Advisors. The move is part of L&T Finance’s drive to monetise non-core businesses. According to reports, Sebi is also working on a discussion paper for the framework of the PE investment in MF.

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