SEBI issues circular for the enhancement of overseas investment limits on mutual funds

On June 03, 2021, the Securities and Exchange Board of India (SEBI) has issued a circular for the enhancement of the overseas investment limits for mutual funds.

The following limits have been revised:

  • Mutual Funds can make overseas investments subject to a maximum of US $ 1 billion per Mutual Fund, within the overall industry limit of US $ 7 billion.
  • Mutual Funds can make investments in overseas Exchange Traded Fund (ETF(s)) subject to a maximum of US $ 300 million per Mutual Fund, within the overall industry limit of US $ 1 billion.
  • In respect of investment limits to be disclosed in the scheme documents at the time of NFO and the investment limits on ongoing schemes such limits would henceforth be soft limits for the purpose of reporting only by Mutual Funds on monthly basis in the format prescribed.

 

[Circular No. SEBI/HO/IMD/IMD-II/DOF3/P/CIR/2021/571]

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