Enhancement of Overseas Investment limits for Mutual Funds
Summary
SEBI has revised the overseas investment limits for Mutual Funds, increasing the per-fund cap to US $ 1 billion within an industry limit of US $ 7 billion. Investments in overseas Exchange Traded Funds are capped at US $ 300 million per Mutual Fund within an industry limit of US $ 1 billion. Previously specified investment limits in scheme documents are now designated as soft limits for monthly reporting purposes only.
Text
limits are being revised as under:
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.
such limits would henceforth be soft limits for the purpose of reporting only by Mutual Funds on monthly basis in the format prescribed vide SEBI circular dated November 5, 2020.
All other conditions specified in the above mentioned circular shall remain unchanged.
This circular shall come into force with immediate effect.
This circular is issued in exercise of the powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, read with Regulation 77 of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.
Source: SecMarx — Enhancement of Overseas Investment limits for Mutual Funds. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.