Description

HDFC Mutual Fund announces merger of FMP into Banking and PSU Debt Fund effective September 25, 2025, requiring investor consent.

Summary

HDFC Mutual Fund announces the merger of HDFC FMP 1158D July 2022 - Series 46 into HDFC Banking and PSU Debt Fund, effective September 25, 2025. The merger aims to provide tax efficiency and continuity for investors while maintaining focus on banking and PSU securities.

Key Points

  • HDFC FMP 1158D July 2022 - Series 46 will merge into HDFC Banking and PSU Debt Fund on maturity
  • Merger approved by AMC Board, Trustees, and SEBI (approval dated July 22, 2025)
  • Tax efficient structure - no forced capital gains on maturity for consenting investors
  • Surviving scheme focuses on SCBs, PSUs, PFIs, and Municipal Corporation securities
  • Positive consent required from merging scheme unitholders
  • Exit option available for surviving scheme unitholders

Regulatory Changes

SEBI has granted no objection to the merger vide communication dated July 22, 2025, treating it as a change in fundamental attributes of both schemes.

Compliance Requirements

  • Merging Scheme Unitholders: Must provide positive consent to participate in merger through signed consent forms, registered email, or online platforms
  • Joint Holders: All joint holders must sign consent form in “joint” mode holdings
  • Lien/Pledge Units: Require no objection from lien holder/pledgee for merger
  • Consent Submission: Multiple modes available - physical forms at Official Points of Acceptance, email to fmpmerger@hdfcfund.com, or online platforms

Important Dates

  • Merger Effective Date: September 25, 2025 (or next business day)
  • Consent Period Start: August 26, 2025
  • Consent Period End: September 24, 2025 (by 5:30 PM for merging scheme)
  • Exit Option Period: August 26, 2025 to September 24, 2025 (by 3:00 PM for surviving scheme)

Impact Assessment

Positive tax impact for investors choosing merger as it avoids forced capital gains taxation at maturity. Provides investment continuity in banking and PSU debt securities. Limited impact on broader market operations, affecting only specific HDFC mutual fund unitholders.

Impact Justification

Affects specific mutual fund investors with tax implications and consent requirements