Foreign liabilities of MFs rise to Rs 566 bn in 2014-15: RBI

Foreign liabilities of mutual fund companies in India increased by Rs 155.4 billion during 2014-15 to Rs 565.9 billion (USD 9 billion), says a RBI survey.
The units issued to non-residents, which had major share within these liabilities, increased from Rs 409.2 billion in March, 2014 to Rs 565.4 billion in March, 2015 (at market value), according to RBI 'Survey of Foreign Liabilities and Assets of Mutual Fund Companies: 2014-15'.
"Other foreign liabilities arising out of unpaid income/ dividend to non-residents, sale proceeds pending repatriation, declined from Rs 1.3 billion in March, 2014 to Rs 0.5 billion in March, 2015," said the survey.

However, contrary to movements in foreign liabilities of MFs, their foreign assets declined from Rs 43.5 billion in March, 2014 to Rs 40.7 billion in March 2015, RBI said.
As a consequence, net liabilities of MFs increased by Rs 158.2 billion during 2014-15 to Rs 525.2 billion (USD 8.4 billion) in March, 2015.
"Equity securities, which remained the dominant component of foreign assets of MFs, declined marginally from Rs 42 billion to Rs 40.4 billion over this period," it said.

Country-wise, foreign liabilities from Mauritius, UAE, UK, USA and Singapore together accounted for 45.6 per cent share (at market value) and 41.9 per cent share (at face value), in the total units issued to non-residents during 2014-15.

In terms of foreign assets, Luxembourg (at 59.6 per cent) continued to be the major overseas investment destination of MFs, followed by USA (26.6 per cent), as per the survey details.
Further, foreign liabilities of Asset Management Companies (AMCs) associated with MFs increased by Rs 4.9 billion during 2014-15 to Rs 38.1 billion.
Foreign assets of AMCs increased marginally from Rs 1.8 billion during the year to Rs 2.2 billion.
"As a consequence, net liabilities increased from Rs 31.4 billion to Rs 35.9 billion over the period," RBI said.
Country-wise, UK accounted for the maximum share in foreign liabilities of MFs (26.4 per cent), followed by Mauritius (24.1 per cent) and Japan (12.1 per cent).

Guernsey and Singapore together accounted for nearly 54 per cent of total foreign assets of AMCs during 2014-15.