SEBI Enhanced Overseas Investment Limit for a Mutual Fund to USD 1 billion

Securities and Exchange Board of India (SEBI) enhanced the overseas investment limit for a mutual fund(MF) house to USD 1 billion from the existing USD 600 million. The overall MF industry limit for investing overseas remained unchanged at USD 7 billion.

  • This will allow MFs to allocate a far higher share of their corpus in foreign securities.
  • SEBI has also increased the overseas investments limit per MF in Exchange Traded Fund (ETFs) to a maximum of USD 300 million from USD 200 million. The overall industry limit was unchanged to USD 1 billion.

Earlier Enhancements:

i.In November 2020, SEBI had enhanced the foreign investment limit per MF house from USD 300 million to USD 600 million, and for ETFs it was increased from USD 50 million to USD 200 million.

ii.In May 2021, SEBI doubled the overall limit of the investment in overseas markets by alternative investment funds(AIFs), and Venture Capital Funds(VCFs) registered under SEBI (VCFs) Regulations, 1996, from USD 750 million to USD 1,500 million (~Rs 10,000 crore). Click here to know more

About Mutual Fund(MF):

i.MF is a mechanism for pooling the resources by issuing units to the investors and investing funds in securities in accordance with objectives as disclosed in the offer document.

ii.Unit Trust of India was the first mutual fund set up in India in 1963.

Recent Related News:

On April 12,2021 SEBI revised the reporting formats for MF and informed the asset management companies (AMCs) to submit the QR on the activities of Mutual Funds/ AMCs to trustees within 21 days from the end of respective quarters.

About Securities and Exchange Board of India (SEBI):

Establishment – On April 12, 1992, in accordance with the SEBI Act, 1992. (Replaced Controller of Capital Issues (CCI))
Headquarters – Mumbai, Maharashtra
Chairman – Ajay Tyagi





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