hsbc is in advanced and exclusive talks with L&T Finance Holdings To buy your Mutual Fund unit.
sales of L&T Mutual Fund Has been in the works for some time, people with direct knowledge of the development told Moneycontrol.
Earlier, private equity firm Blackstone was considering finalizing a deal to acquire L&T Mutual Fund, reported Moneycontrol. Blackstone proposed a deal for Rs 3,200 crore against Rs 4,000 crore expected by the seller, but required regulatory approval.
The Securities and Exchange Board of India (SEBI) in the past has not been in favor of private equity firms holding majority stake in mutual funds due to the short-term nature of these sponsor funds.
The biggest highlight of Blackstone was that it already owns a real estate investment trust in India.
According to people familiar with the matter, SEBI is preparing to prepare a discussion paper on ‘framework for PE firms to invest in Indian MFs’.
Given the delay and the additional approvals required, L&T Finance Holdings has spoken to HSBC about a possible sale of its mutual fund unit.
Moneycontrol contacted the companies involved but declined to comment.
L&T Finance Holdings said, “We do not comment on speculations.
An HSBC spokesperson said: “No comment.”
“No comment,” Blackstone said.
SEBI did not respond to Moneycontrol’s query on the deal.
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