Motilal Oswal AMC to accept fresh investments in international schemes

The AMC had suspended fresh subscriptions to these schemes in Jan after the MF industry came close to breaching global investment limit

Motilal Oswal Asset Management Company (AMC) has re-opened three of its international schemes for subscription. From next month, the AMC will be accepting up to Rs 2 lakh per calendar month, per permanent account number (PAN) in Motilal Oswal S&P 500 Index Fund, Motilal Oswal MSCI EAFE Top 100 Select Index Fund and Motilal Oswal Nasdaq 100 Fund of Fund.

According to a communication issued by the AMC, the restrictions have been lifted only from lumpsum and switch-in investments. "Motilal Oswal AMC is continuing with the restriction on systematic investment options such as SIP, STP," the fund house said.

Motilal Oswal AMC along with other fund houses had suspended fresh investments in their international schemes in January 2022 after the Securities and Exchange Board of India (Sebi) advised mutual funds to stop further investments in foreign stocks to avoid breach of industry-wide overseas limits.

According to Sebi, the mutual funds can make overseas investments up to $7 billion. The restrictions came into force after the industry came close to breaching this limit in January.

In June, Sebi lifted the restriction on mutual fund investments in foreign stocks, opening the path for mutual funds to re-open their international schemes for subscription. However, the regulator imposed a condition that fund houses can only invest up to the available headroom without breaching the overseas investment limits utilised as on February 1.