In a circular issued by SEBI, the total limit of the mutual fund industry has been increased to $ 7 billion.
Markets regulator SEBI increased the foreign investment limit for mutual fund houses from the current $600 million to $1 billion. In a circular issued by SEBI, the total limit of the mutual fund industry has been increased to $ 7 billion. This change in limit will allow mutual fund companies to allocate a higher share of the fund to foreign securities.
The mutual fund industry had been demanding an increase in the foreign investment limit. SEBI said, with an overall limit of $7 billion for the mutual fund industry, foreign investments can be made on a maximum of $1 billion per mutual fund.
The new limit will be applicable with immediate effect
In addition, one can invest in Overseas Exchange Traded Funds (EFT) on a maximum per mutual fund basis of $300 million with an overall limit of $1 billion for the mutual fund industry. Earlier this investment limit per house was $ 200 million. SEBI said that the new investment limits will come into force with immediate effect.
Let us tell you that SEBI in November 2020 increased the foreign investment limit for each fund house from $ 300 million to $ 600 million, while the limit for ETFs was increased from $ 50 million to $ 200 million.
Earlier, amid increasing focus on overseas markets by Indian investors, the market regulator last month raised the foreign investment limit for Alternative Investment Funds (AIFs) and Venture Cap Funds (VCFs) from $750 million to $150 million. was.
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