The Mutual Fund industry is forced to shut the door for the international funds, all eyes are on RBI right now
- News|Blog|Company Law|
- 2 Min Read
- By Taxmann
- |
- Last Updated on 18 February, 2022
Latest from Taxmann
By Editorial Team
1. Background
As per SEBI Circular Dated, June 03, 20211, mutual funds are allowed to make overseas investments up to USD 1 billion per mutual fund, with an overall industry limit of USD 7 billion. Earlier, the limit per mutual fund was USD 300 million which was enhanced to USD 600 million by the SEBI through a circular dated Nov 05, 20202. Considering the remarkable growth in the quantum of overseas investments made by mutual funds, the limit per mutual fund was raised to USD 1 billion from the earlier limit of USD 600 million, but the overall industry limit was kept as USD 7 billion as capped by the RBI six years ago through circular dated Jan 1, 20163. At that time also there were rumors that the overall limit may be enhanced by the RBI. However, the overall threshold limit is yet to be notified by the RBI.
2. Overall Industry Limit about to exhaust
As there is an increase in the volume of overseas investments by Mutual funds in the past few years. Fund houses estimate that overseas investments would have crossed (USD6.7billion) as global markets had witnessed a bull run till December. As the overall industry limit is capped asUSD7 billion by the RBI. Currently, Mutual funds are on the verge of crossing the same. The increase in the overall limit by the RBI is the need of the hour. Mutual funds expect the RBI to increase the overseas investment limit fromUSD7 billion to at least USD 15 billion.
Click Here To Read The Complete Article
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
CA | CS | CMA
