SEBI Doubles Overseas Investment Limit for Mutual Funds

​SEBI says mutual funds can now invest up to $600mn overseas, up from $300mn previously, subject to a $7bn overall industry limit.

SEBI (Securities and Exchange Board Of India) has doubled the foreign investment limit per mutual fund from USD 300 million to USD 600 million.

The new limit is subject to a maximum overall industry limit of USD 7 billion, SEBI said, indicating it will be allocated on a first come first serve basis. Each fund will, however, have USD 50 million of the allocation reserved under the overall limit.

Mutual funds can invest in overseas ETFs up to USD 200 million, subject to an overall industry limit of USD 1 billion.

Newly launching mutual funds that intend to invest overseas should disclose the amounts they plan to invest in overseas securities and ETFs in scheme documents, SEBI said.

For ongoing schemes that invest overseas, an investment headroom of 20 percent of the average AUM in overseas securities and ETFs of the previous three calendar months will be available for investment for a given month.

Fund managers have to report their utilisation of the overseas investment limit to SEBI on a monthly basis, within 10 days from the end of each month.