The Securities and Exchange Board of India (SEBI) on November 04, 2024, issued the notification regarding the Investments in Overseas Mutual Funds/ Unit Trusts by Indian Mutual Funds.
The following has been stated namely: -
• Reference is drawn to Master Circular dated June 27, 2024 on “Master Circular for Mutual Funds”
• Indian Mutual Fund schemes may also invest in overseas MF/UTs that have exposure to Indian securities, provided that the total exposure to Indian securities by these overseas MF/UTs shall not be more than 25% of their assets.
• If the exposure by an underlying overseas MF/UTs to Indian securities exceeds 25% of their net assets, an observance period of 6 months from the date of publicly available information of such breach (e.g. portfolio disclosures) shall be permitted to Indian Mutual Fund schemes
• If the portfolio of an underlying overseas MF/UT is not rebalanced within the 6 month observance period, Indian Mutual Fund scheme shall liquidate its investments in the concerned underlying overseas MF/UT within the next 6 months (‘liquidation period’) from end of the observance period.
• The Indian Mutual Fund scheme(s) shall be exempted from the requirement of a fundamental attribute change for any change in underlying overseas MF/UT.
This shall come into force on November 04, 2024.
[Notification No. SEBI/HO/IMD/IMD-I POD1/P/CIR/2024/149]
