Mumbai: Capital market regulator SEBI has cancelled the registration of Fidelity Mutual Fund following its buyout by L&T Finance.
The decision was taken following the acquisition of Fidelity Mutual Fund by L&T Finance and at the request of FIL Fund Management, the Asset Management Company (AMC) of Fidelity Mutual Fund.
Securities and Exchange Board of India (SEBI), through its letter dated January 14, has "cancelled the certificate of registration of Fidelity Mutual Fund and has withdrawn the approval granted to FIL Fund Management to act as the Asset Management Company."
Consequently, Fidelity Mutual Fund, FIL Trustee Company and FIL Fund Management cannot carry out any activity as a Mutual Fund, Trustee Company and asset management company, respectively, with immediate effect.
In November, L&T Finance, a part of diversified group Larsen & Toubro, had completed the acquisition of Fidelity's mutual fund business in India for an undisclosed amount.
L&T Finance is a part of engineering conglomerate L&T Group and Fidelity Mutual Fund is part of the US-based Fidelity Worldwide Investment.