SEBI enhances limit for overseas investments by mutual funds

Mumbai, Sep 26 (UNI) In order to facilitate overseas investments by mutual funds, Securities and Exchange Board of India (SEBI) today increased the limit for overseas investment by each mutual fund from US Dollar 200 million to US Dollar 300 million.

The market regulator has removed the sub-ceiling linked to the net assets of a mutual fund as on March 31, SEBI said in a circular issued here.

The overall limit for the overseas investments by mutual funds would subject to be limited to US Dollar 5 billion already announced by the Reserve Bank of India, the SEBI said.

The SEBI has also removed yet another the requirement of existence for 10 years or experience of investing in foreign securities for being eligible to invest in overseas Exchange Traded Funds (ETFs).

MFs can now also invest in the new categories of overseas instruments such as ADRs/GDRs issued by foreign companies Initial and follow on public offerings for listing at recognized stock exchanges overseas, Foreign debt securities in the countries with fully convertible currencies, with rating not below investment grade and Money market instruments rated not below investment grade, the SEBI said.

UNI