Sebi raises overseas exposure limit for mutual fund houses to USD 1 billion
PTI
Capital markets regulator Sebi on Thursday enhanced the overseas investment limit for a mutual fund house to USD 1 billion from the existing USD 600 million.
The overall mutual fund industry limit is capped at USD 7 billion, the Securities and Exchange Board of India (Sebi) said in a circular.
The increase in the limit would allow mutual funds to allocate a higher share of their corpus for foreign securities.
The move comes following requests from the mutual fund industry to enhance the foreign investment limit. Mutual funds can make overseas investments subject to a maximum of USD 1 billion per mutual fund, within the overall industry limit of USD 7 billion, Sebi said.
SEBI raise overseas investment limit for MFs to $1 bn
By IANS |
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SEBI.. Image Source: IANS News
Mumbai, June 3 : Mutual funds can now make overseas investments of up to $1 billion within the overall industry limit of $7 billion.
The Securities and Exchange Board of India (SEBI) on Thursday raised the investment limit to $1 billion per mutual fund.
In a circular, the capital market regulator said that the decision has been taken post representations from the mutual fund industry.
The SEBI also decided that mutual funds can make investments in overseas Exchange Traded Fund (ETF) subject to a maximum of $300 million per mutual fund, within the overall industry limit of $1 billion .
The Securities and Exchange Board of India (Sebi) on Thursday revised the overseas investment limits for mutual funds (MFs). The market regulator in a circular stated that MFs can make overseas investments subject to a maximum of $1 billion per mutual fund, within the overall industry limit of $7 billion. MFs had made representation to the regulator to increase the investments limits. In November last year, Sebi had enhanced the overseas investment from $300 million per mutual fund to $600 million per mutual fund. Industry participants say that this announcement was the need of the hour as several of the MF schemes which were international focused were attracting huge inflows. Sebi in its circular stated that, “MFs can make investments in overseas Exchange Traded Fund (ETFs) subject to a maximum of $ 300 million per mutual fund, within the overall industry limit of US $ 1 billion.” Earlier the limit was $200 million per mutual fund.
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