Exposure limit for overseas funds: Indian mutual funds must ensure underlying funds keep home market exposure below prescribed limit, with observance protocols. Indian mutual fund schemes may invest in overseas mutual funds/unit trusts provided the underlying overseas MF/UTs do not have more than 25% exposure to Indian securities at the time of investment. Such overseas funds must be pooled blind vehicles with pari passu and pro rata investor rights, managed by an independent investment manager, disclose portfolios at least quarterly, and must not have advisory agreements with Indian mutual funds. If exposure breaches the limit post investment, a six month observance period applies followed by a six month liquidation period if rebalancing does not occur; non compliance attracts specified restrictions on the asset management company.