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TMI BlogInvestments in Overseas Mutual Funds/ Unit Trusts by Indian Mutual FundsX X X X Extracts X X X X X X X X Extracts X X X X ..... ent in overseas Mutual Funds/Unit Trusts ( MF/UTs ). 2. In order to facilitate ease of investment in overseas MF/UTs, to bring transparency in the manner of investment, and to enable Mutual Funds to diversify their overseas investments, the following has been decided based on feedback received from the industry, consultation with Mutual Fund Advisory Committee and public consultation: Investment by schemes: 2.1. In terms of paragraph 12.19.2.10 of the Master Circular , 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. 2.2. While investing in overseas MF/UTs that have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hemes shall ensure that the underlying overseas MF/UTs do not have more than 25% exposure to Indian securities. 2.4. Subsequent to the investment, 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 for monitoring of any portfolio rebalancing activity by the underlying overseas MF/UT. 2.5. During the observance period, the Indian Mutual Fund scheme: 2.5.1. shall not undertake any fresh investment in such overseas MF/UT. 2.5.2. may resume their investments in such overseas MF/UT in case the exposure to Indian securities ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cum addendum is issued to investors. 3. The provisions of this circular shall come into force with effect from the date of this circular. 4. The circular is issued in exercise of powers conferred under Section 11(1) of Securities and Exchange Board of India Act, 1992 , read with the provisions of Regulation 43(1) Regulation 77 of SEBI (Mutual Funds) Regulations, 1996 , to protect the interest of investors in securities and to promote the development of, and to regulate the securities market. 5. This circular is available on SEBI website at http://www.sebi.gov.in under the category Legal - Circulars Yours faithfully, Peter Mardi Deputy General Manager Investment Management Department Tel: 022 - 26449233 Email: [email protected] - Circula ..... X X X X Extracts X X X X X X X X Extracts X X X X
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