Overseas investment limits set obligations for mutual funds including permitted instruments, governance, disclosure and reporting requirements. SEBI permits mutual funds to make overseas investments within an overall aggregate ceiling and a per-fund cap, and a separate ceiling for overseas ETFs, enumerating permitted instruments (ADRs/GDRs, overseas listed equity, IPOs, rated foreign debt and money market instruments, repos, government securities, exchange-traded derivatives for hedging, short-term bank deposits, and overseas mutual fund units with limits). Funds must appoint a Dedicated Fund Manager, Boards of AMCs and Trustees must undertake documented due diligence, mandatory disclosures in offer documents and half-yearly reports are required, AMCs must report performance and breaches to Trustees, Trustees must comment in half-yearly filings to SEBI, and specified prudential norms and expense disclosure rules apply; prior circulars on these matters are withdrawn and an application procedure to SEBI is prescribed.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Overseas investment limits set obligations for mutual funds including permitted instruments, governance, disclosure and reporting requirements.
SEBI permits mutual funds to make overseas investments within an overall aggregate ceiling and a per-fund cap, and a separate ceiling for overseas ETFs, enumerating permitted instruments (ADRs/GDRs, overseas listed equity, IPOs, rated foreign debt and money market instruments, repos, government securities, exchange-traded derivatives for hedging, short-term bank deposits, and overseas mutual fund units with limits). Funds must appoint a Dedicated Fund Manager, Boards of AMCs and Trustees must undertake documented due diligence, mandatory disclosures in offer documents and half-yearly reports are required, AMCs must report performance and breaches to Trustees, Trustees must comment in half-yearly filings to SEBI, and specified prudential norms and expense disclosure rules apply; prior circulars on these matters are withdrawn and an application procedure to SEBI is prescribed.
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