In its latest circular issued on 5 November 2020, the Securities & Exchange Board of India (SEBI) has increased the overseas investment limit of each fund house to $600 million with immediate effect, which is twice the earlier limit of $300 million. However, the overall industry limit remains unchanged at $7 billion.<\/p>\n
The move comes after fund houses sent a representation to SEBI to increase the limits wherever possible, SEBI said in the circular. Also, there has been a recent surge in investor interest in overseas securities.<\/p>\n
The circular says that mutual funds can now make investments in foreign Exchange Traded Funds (ETFs<\/a>) subject to a maximum $200 million per mutual fund from $50 million earlier and within the overall industry limit of $1 billion.<\/p>\n SEBI said that the mutual funds launching New Fund Offers (NFOs<\/a>) intending to invest in overseas securities \/ ETFs have to ensure that the scheme documents disclose the intended amount that they plan to invest in overseas securities. Such limits disclosed in scheme documents shall be valid for a period of six months from the date of closure of NFO.<\/p>\n For ongoing schemes, the regulator has allowed an investment headroom of 20% of average AUM in foreign securities\/ETFs of the previous 3 calendar months subject to a maximum limit of $600 million. In its latest circular issued on 5 November 2020, the Securities & Exchange Board of India (SEBI) has increased the overseas investment limit of each fund house to $600 million with immediate effect, which is twice the earlier limit of $300 million. However, the overall industry limit remains unchanged at $7 billion. The move comesContinue reading “SEBI hikes Mutual Fund\u2019s Foreign Investment Limit to $600 Million”<\/span><\/a><\/p>\n","protected":false},"author":17,"featured_media":1340,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[],"class_list":["post-1339","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-announcements"],"_links":{"self":[{"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/posts\/1339","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/users\/17"}],"replies":[{"embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/comments?post=1339"}],"version-history":[{"count":0,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/posts\/1339\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/media\/1340"}],"wp:attachment":[{"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/media?parent=1339"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/categories?post=1339"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/tags?post=1339"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nMFs need to report the utilization of overseas investment limits every month, within 10 days from the end of each month.<\/p>\n","protected":false},"excerpt":{"rendered":"