Description

Merger of Aditya Birla Sun Life CRISIL-IBX AAA NBFC-HFC Index Dec 2025 Fund into Aditya Birla Sun Life CRISIL-IBX Financial Services 9-12 Months Debt Index Fund, effective after close of business on December 2025.

Summary

Aditya Birla Sun Life Mutual Fund has announced the merger of Aditya Birla Sun Life CRISIL-IBX AAA NBFC-HFC Index Dec 2025 Fund (Merging Scheme) into Aditya Birla Sun Life CRISIL-IBX Financial Services 9-12 Months Debt Index Fund (Surviving Scheme). The merger has been approved by both the Board of Directors of Aditya Birla Sun Life AMC Limited and the Trustees, and noted by SEBI on November 25, 2025. The merger will be effective after close of business hours in December 2025.

Key Points

  • Merging Scheme: Aditya Birla Sun Life CRISIL-IBX AAA NBFC-HFC Index Dec 2025 Fund (open ended Target Maturity Index Fund with moderate interest rate risk and relatively low credit risk)
  • Surviving Scheme: Aditya Birla Sun Life CRISIL-IBX Financial Services 9-12 Months Debt Index Fund (open ended Constant Maturity Index Fund with relatively low interest rate risk and relatively low credit risk)
  • Unitholders who disagree with the merger will have their investments redeemed at applicable NAV
  • Redemption proceeds will be transferred to unitholders, resulting in short-term or long-term capital gains/loss depending on holding period
  • SEBI noted the proposed merger via communication dated November 25, 2025
  • Addendum No. 50/2025 issued on November 26, 2025

Regulatory Changes

All references to the Merging Scheme have been deleted from the Scheme Information Document (SID) and Key Information Memorandum (KIM) of the Fund. The updated SID and KIM of the Surviving Scheme will be made available at Investor Service Centers (ISCs) and on the website https://mutualfund.adityabirlacapital.com immediately after completion of the exit option period.

Compliance Requirements

  • Unitholders not in agreement with the merger should exercise their exit option during the specified period
  • NRI investors will have tax deducted in accordance with applicable tax laws upon exercise of exit option
  • Unitholders are required to check relevant Income Tax provisions applicable to them
  • Unitholders are advised to consult their professional tax advisors regarding tax and financial implications arising from the merger
  • Unitholders continuing with investments in the Surviving Scheme will face no tax implications from the merger itself

Important Dates

  • SEBI Communication Date: November 25, 2025
  • Notice/Addendum Issue Date: November 26, 2025
  • Merger Effective Date: After close of business hours on Wednesday, December 2025 (specific date not fully visible in content)
  • Exit Option Period: To be determined (unitholders will be provided with an exit window)

Impact Assessment

Impact on Unitholders:

  • Unitholders of the Merging Scheme will automatically become unitholders of the Surviving Scheme unless they opt for redemption
  • Those choosing to remain invested will experience no immediate tax implications
  • Unitholders exercising exit option will face capital gains tax consequences based on their holding period
  • The Surviving Scheme has a different investment focus (9-12 months constant maturity vs. target maturity Dec 2025)

Market Impact:

  • Limited broader market impact as this affects specific mutual fund scheme unitholders only
  • Change in asset allocation from target maturity structure to constant maturity structure
  • Potential liquidity event if significant unitholders choose to exit

Operational Impact:

  • Updated documentation (SID/KIM) will be available post-exit option period
  • ISCs and website will provide updated information and support to unitholders
  • Administrative consolidation of two schemes into one

Impact Justification

Affects unitholders of specific mutual fund schemes with exit option available; SEBI approved merger on November 25, 2025