HSBC Asset Management India (HSBC AMC) has secured approval from the Securities and Exchange Board of India (SEBI) to buy L&T Investment Management (LTIM) for $425m.

LTIM is a fully-owned subsidiary of L&T Finance (LTFH) and functions as investment management platform of L&T Mutual Fund.

LTIM handled $8.79bn of average assets under management (AAUM) and more than 2.2 million active folios until September this year.

The SEBI nod is subject to certain conditions and additional approvals.

It comes after HSBC AMC received regulatory approval from Competition Commission of India (CCI) for the deal in March this year.

Following the completion of the deal, the mutual fund programmes managed by L&T Mutual Fund will be handed over, merged or combined with HSBC Mutual Fund’s identified schemes or vice-versa.

The wholly-owned subsidiary of HSBC also plans to merge LTIM with one of its current asset management businesses in India, which had $1.66bn of AAUM until last month.

In a statement, HSBC said: “The sponsorship, trusteeship, management, and administration of the L&T Mutual Fund shall be correspondingly changed.”

Through the deal, which was announced in December last year, HSBC intends to become a major wealth management business in Asia.

HSBC further added: “Strengthening HSBC’s asset management business in India will add to its ability to serve the wealth needs of its customers in India as well as those of its growing non-resident Indian customer base across the world.”