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The Dubai Financial Services Authority has approached SEBI for allowing Dubai mutual funds to be sold in India.

At present, mutual funds need to be registered with SEBI to market and sell their products directly to Indian investors. Further, the underlying assets of the funds also need to be listed, traded and regulated in India by SEBI.

In the case of Dubai-based mutual funds, the underlying assets are not listed or traded or regulated with SEBI, said a senior Indian industry official.

Further, with the Indian rupee not being fully convertible, DFSA’s proposal might violate aspects of the current Foreign Exchange Management Act, he added.

In the matter of Indian investment in foreign funds, RBI limits Indian investments to $2 lakh a year for an individual.

“According to SEBI norms, mutual funds come under the ‘Collective Investment Vehicle’ (CIV) norm and as entities have to seek a certificate of registration in accordance to market and sell their products in India,” said Mr Dhirendra Kumar, Chief Executive Officer of Value Research.

More Stories on : Mutual Funds | Overseas Investments | Forex

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