With international diversity gaining more recognition, and the flow of investors into such programs as partnerships (MFs), the Securities and Exchange Board of India (SEBI) market regulator has now increased the overseas investment limit to $ 1 billion.
Strong increase in boundaries
In November, 2020, SEBI doubled the limit to $ 600 million from $ 300 million for each fund house. However, SEBI has not changed the full limit of the mutual fund industry, and has kept it at $ 7 billion.
“The influx of international programs has increased dramatically. Even when the restrictions were lifted last year, some fund houses were almost at the improved limits, ”said Rajeev Thakkar, chief investment officer at PPFAS MF.
Also read : IDBI Bank of India is defending a $ 239 million debt judgment in the UK Supreme Court
The new circular states that each co-operative fund could invest up to $ 300 million in foreign exchange (ETFs), but within the global MF’s $ 1 billion industry limit.
The fund houses have been issuing several investments in global markets recently.
Other recent fund launches include Edelweiss MSCI India Domestic & World Healthcare 45 Index Fund, SBI International Access US Equity – FoF, Axis Global Innovation Fund of Fund and HSBC Global Equity Climate Change Fund Fund.
Also read : The IT sector should move on to Nifty 50, the re-launch of the June series, says Deepak Gupta of Emkay