Securities and Exchange Board of India (“SEBI”), vide circular no. SEBI/HO/IMD/DF3/CIR/P/2020/225 dated November 05, 2020 (“November Circular”) modified the overseas investment limits per mutual fund prescribed vide circular no. SEBI/IMD/CIR No.7/104753/08 dated September 26, 2007 and circular no. SEBI/IMD/CIR No.2/122577/08 dated April 08, 2008.
Based on the representations received from the mutual fund industry to enhance the investment limits, SEBI has further revised the overseas investment limits per mutual fund vide circular no. SEBI/HO/IMD/IMD-II/DOF3/P/CIR/2021/571 (“Circular”) on June 3, 2021.
The revised limits as per the Circular are extracted below:
1. Mutual funds can make overseas investments subject to a maximum of USD 1,000,000,000 (United States Dollar one billion) per mutual fund, within the overall industry limit of USD 7,000,000,000 (United States Dollar seven billion).
2. Mutual funds can make investments in overseas Exchange Traded Fund (ETF(s)) subject to a maximum of USD 300,000,000 (United States Dollar three hundred million) per mutual fund, within the overall industry limit of USD 1,000,000,000 (United States Dollar one billion).
3. In respect of investment limits to be disclosed in the scheme documents at the time of new fund offer as specified in Para 2.2 of the November Circular, and the investment limits on ongoing schemes as specified in Para 2.3 of the November Circular, the limits would henceforth be soft limits for the purpose of reporting only by mutual funds on monthly basis in the format prescribed under the November Circular.
This update has been contributed by Anurag Prasad (Associate).
Argus Knowledge Centre is now on WhatsApp! Send us a message on +91 8433523504 to receive updates from our Knowledge Centre.
11, 1st Floor, Free Press House
215, Nariman Point
Mumbai – 400021
9 – 10 Bahadur Shah Zafar Marg
Delhi – 110002
68 Nandidurga Road
Bengaluru – 560046
3rd Floor, 27B Camac Street
Kolkata – 700016
Ahmedabad – 380054
The rules of the Bar Council of India do not permit advocates to solicit work or advertise in any manner. This website has been created only for informational purposes and is not intended to constitute solicitation, invitation, advertisement or inducement of any sort whatsoever from us or any of our members to solicit any work in any manner. By clicking on 'Agree' below, you acknowledge and confirm the following:
a) there has been no solicitation, invitation, advertisement or inducement of any sort whatsoever from us or any of our members to solicit any work through this website;
b) you are desirous of obtaining further information about us on your own accord and for your use;
c) no information or material provided on this website is to be construed as a legal opinion and use of this website will not create any lawyer-client relationship;
d) while reasonable care has been taken in ensuring the accuracy of the contents of the website, Argus Partners shall not be responsible for the results of any actions taken on the basis of information provided in this website or for any error or omission in the website; and
e) in cases where the user has any legal issues, the user must seek independent legal advice.