Markets

MFs can resume overseas fund investments within $7-billion limits: SEBI

BL Mumbai Bureau | | Updated on: Jun 21, 2022

3d render of computer keyboard with MUTUAL FUNDS button. Stock market issue concept | Photo Credit: ayo888

Edelweiss MF, PGIM revoke suspension, while Motilal Oswal AMC wants limit to be increased

Edelweiss Mutual Fund has opened up fresh investment in seven of its schemes investing in international markets as market regulator SEBI provided a leeway for fund houses to fill-in the gap after the sharp fall in global markets.

Earlier, the Association of Mutual Funds in India had capped mutual funds investment in global markets at the February-level as it was nearing the overall limit of $7 billion fixed for the industry by the RBI.

SEBI allows investments, with a rider

SEBI, in a notification dated June 17, has informed that mutual funds can resume subscriptions and make investments in overseas funds and securities up to the head room available without breaching the overseas investment limits as of February 1 at mutual fund level, said Edelweiss MF in a statement.

Following this, Edelweiss Asset Management has decided to revoke the temporary suspension of transactions in Edelweiss ASEAN Equity Off-shore Fund, Greater China Equity Off-shore, US Technology Equity Fund of Fund, Emerging Markets Opportunities Equity Offshore, Europe Dynamic Equity Offshore, US Value Equity Off-shore, MSCI India Domestic & World Healthcare 45 Index from Tuesday.

The fund house will accept lump-sum subscription, fresh systematic investment plan, systematic transfer plan and switch-out or instalments of systematic dividend transfer plan in these schemes.

The AMC reserves the right to suspend the subscriptions as and when it is close to the headroom limit which was set on February 1, it added.

PGIM India, too, has started accepting all kind of fresh investment in three of its international funds — PGIM India Global Equity Opportunities Fund, Emerging Markets Equity Fund and Global Select Real Estate Securities Fund of Fund — from Tuesday.

Motilal Oswal continuing with ban

Meanwhile, Motilal Oswal Mutual Fund is continuing with the ban on fresh investment in its five international schemes.

The fund house in a note to investors said it has not seen any major redemptions in the past few months since this restrictions were applied, resulting in no additional room for accepting fresh investment in any of the international funds.

“We are hoping that overseas investment limit will soon be enhanced and we will be able to accept fresh investments in these schemes,” it said.

Published on June 21, 2022
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