SEBI

SEBI enhances Overseas Investment limits for Mutual Funds to US $ 1 billion and in ETF to US $ 300 million

SEBI enhances Overseas Investment limits for Mutual Funds to US $ 1 billion and investments in overseas Exchange Traded Fund  increased to US $ 300 million

,Securities and Exchange Board of India

CIRCULAR

SEBI/HO/IMD/IMD-II/DOF3/P/CIR/2021/571

June 03, 2021

All Mutual Funds(MFs)/
Asset Management Companies (AMCs)/
Trustee Companies/ Board of Trustees of Mutual Funds/
Association of Mutual Funds in India (AMFI)

Sir / Madam,

Sub: Enhancement of Overseas Investment limits for Mutual Funds

1. The Para 1 of SEBI Circular No. SEBI/HO/IMD/DF3/CIR/P/2020/225 dated November 05, 2020 specified the overseas investment limits per Mutual Fund.

2. In this regard, based on the representations received from Mutual Fund industry to enhance the investment limits per Mutual Fund, the limits are being revised as under:

2.1 Mutual Funds can make overseas investments subject to a maximum of US $ 1 billion per Mutual Fund, within the overall industry limit of US $ 7 billion.

2.2 Mutual Funds can make investments in overseas Exchange Traded Fund (ETF(s)) subject to a maximum of US $ 300 million per Mutual Fund, within the overall industry limit of US $ 1 billion.

2.3 In respect of investment limits to be disclosed in the scheme documents at the time of NFO as specified in Para 2.2 of the aforesaid circular, and the investment limits on ongoing schemes as specified in Para 2.3 of the aforesaid circular, such limits would henceforth be soft limits for the purpose of reporting only by Mutual Funds on monthly basis in the format prescribed vide SEBI circular dated November 5, 2020.

3. All other conditions specified in the above mentioned circular shall remain unchanged.

4. This circular shall come into force with immediate effect.

5. This circular is issued in exercise of the powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, read with Regulation 77 of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.

Yours faithfully,

Bithin Mahanta
General Manager
Tel no.: 022-26449634
Email: bithinm@sebi.gov.in

Share

Recent Posts

  • Prevention of Corruption Act

CBDT Instruction can not absolve persons to explain source of gold within limits specified – SC

Mere CBDT Instructions cannot absolve individuals of their obligation to explain the source and nature of their gold holdings, even…

2 days ago
  • ICSI

Empanelment of General Observers for ICSI Examinations December 2026. Last date 16.11.2026

Empanelment of General Observers for ICSI Examinations December 2026 ICSI has invited interested members to enroll as General Observers for…

3 days ago
  • Income Tax

ITAT address some important issues relating to deduction u/s 80IA

ITAT answers some important and inter-related issues relating to deduction u/s 80IA In a recent judgment, ITAT has dealt with…

4 days ago
  • Income Tax

Mere carry forward of loss can not be denied for belated return – ITAT

Carry forward of loss can not be denied for belated return, it is only the set off in subsequent year…

2 weeks ago
  • Income Tax

Sales duly recorded in books & VAT returns, can’t be held bogus without cogent adverse material

Where sales are duly recorded in books and VAT returns, to treat it bogus sales, AO must bringing cogent adverse…

2 weeks ago
  • Income Tax

ITAT allows Diwali expenses incurred by assessee as business expenses

Expenses to celebrate Diwali with staff creates a goodwill and, therefore amounts to expenses incurred for the purpose of business…

2 weeks ago