Investments in Overseas Mutual Funds/ Unit Trusts by Indian Mutual Funds

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....des investment 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 ....

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....t), Indian Mutual Fund schemes 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 e....