HSBC in talks to buy L&T mutual fund arm - report

HSBC is in advanced and exclusive talks with L&T Finance Holdings to buy its the Indian firm’s mutual fund arm, according to reports on Tuesday.

Blackstone had a bid rejected in 2020 by the Indian Securities and Exchange Board which disapproved of private equity firms having a significant stake in mutual funds owing to their short-term approach.

Given the delay and the additional approvals required, L&T Finance Holdings has been engaged with HSBC about a possible sale of its mutual fund arm, the news website Moneycontrol reported, citing people with direct knowledge of the matter.

HSBC and L&T declined comment, the website added.