Description

HDFC FMP 1158D July 2022 - Series 46 will merge into HDFC Banking and PSU Debt Fund on September 25, 2025, requiring positive consent from merging scheme investors.

Summary

HDFC Trustees has decided to merge HDFC FMP 1158D July 2022 - Series 46 into HDFC Banking and PSU Debt Fund on the maturity date of September 25, 2025. The merger has received SEBI approval dated July 22, 2025, and requires positive consent from merging scheme unitholders during a 30-day period.

Key Points

  • HDFC FMP 1158D July 2022 - Series 46 will merge into HDFC Banking and PSU Debt Fund on September 25, 2025
  • SEBI has granted no objection to the merger via communication dated July 22, 2025
  • Merger provides tax efficiency by avoiding forced capital gains on FMP maturity
  • Surviving scheme invests in securities from banks, PSUs, public financial institutions, and municipal corporations
  • Both AMC Board and Trustees have approved the merger as a fundamental attribute change

Regulatory Changes

SEBI has approved the merger as it constitutes a change in fundamental attributes of both schemes. The merger follows regulatory requirements for mutual fund scheme consolidations.

Compliance Requirements

For Merging Scheme Unitholders:

  • Must provide positive consent by 5:30 PM on September 24, 2025
  • Consent can be submitted via original signed form, registered email to fmpmerger@hdfcfund.com, or online portals
  • Joint holders must all sign consent forms
  • Units with lien/pledge require no objection from lien holder/pledgee

For Surviving Scheme Unitholders:

  • Exit option available until 3:00 PM on September 24, 2025

Important Dates

  • Consent/Exit Period Start: August 26, 2025
  • Consent Deadline: September 24, 2025 (5:30 PM)
  • Exit Option Deadline: September 24, 2025 (3:00 PM)
  • Merger Effective Date: September 25, 2025 (or next business day)

Impact Assessment

The merger provides tax benefits to FMP investors by allowing continued investment without triggering capital gains on maturity. Unitholders who do not consent will receive maturity proceeds at prevailing NAV. The consolidation aligns with HDFC’s portfolio optimization strategy while maintaining investment in banking and PSU debt securities.

Impact Justification

Affects specific mutual fund investors with defined consent and exit procedures