Motilal Oswal Asset Management will start accepting fresh investment in five of its overseas funds — Motilal Oswal S&P 500 Index Fund, Nasdaq 100 ETF, Nasdaq 100 Fund of Fund, MSCI EAFE Top 100 Select Index and Nasdaq ‘Q’ 50 ETF — from January 1.

Last January, market regulator SEBI imposed a complete ban on mutual fund (MF) investment in the overseas market as the asset under management (AUM) of these schemes was inching close to the prescribed limit of $7 billion. There is a separate limit of $1 billion for investment in overseas ETFs (Exchange Traded Funds).

With the sharp fall in overseas market, widespread redemption and rupee depreciation, SEBI in June reopened overseas investment subject to the headroom available.

“We will start accepting fresh subscriptions in these schemes via lump sum and systematic investment options such as SIPs, STPs without any restrictions,” said Motilal Oswal AMC in a statement on Tuesday.

The previously paused systematic investment options will also be resumed and processed as per their registration, it added.

In the event of complete exhaustion of the available headroom being currently used to resume overseas investments, all subscriptions will be paused again and investors will promptly be notified of any such update on this matter, it said.

Representation to RBI

Separately, the MF industry has made a representation to the Reserve Bank of India to increase the overseas investment limit for the industry.

The AUM of fund of funds investing overseas has dipped six per cent last month to ₹20,863 crore against ₹22,128 crore in January. The inflows in these schemes have dried down to ₹18 crore from ₹389 crore in the same period.

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