Foreign liabilities of Indian MF companies up by 36% in FY24: RBI survey

Foreign liabilities of MF companies increased by 36.0 per cent during 2023-24 to US$ 25.4 billion at market value in March 2024, according to the Reserve Bank of India. The Reserve Bank released the results of the 2023-24 round of the survey of Foreign Liabilities and Assets of the Mutual Fund (MF) Companies. The survey covered 45 Indian MF companies (list in Annex) and their Asset Management Companies (AMCs), which held/acquired foreign assets/ liabilities during 2023-24 and/or in the preceding years.

Overseas assets of MF companies increased to US$ 8.8 billion in end-March 2024, primarily on account of rise in equity securities. As a result, the net foreign liabilities of MF companies increased to US$ 16.6 billion in March 2024 from US$ 12.0 billion a year ago. The United Arab Emirates (UAE), the United States of America (USA), the United Kingdom (UK) and Singapore were the top destinations for MF units held by non-residents, both in terms of face value as well as at market value. The USA and Luxembourg accounted for nearly 85 per cent of the overseas equity investment of the MF companies. The information on face value and market value of units held by non-residents, unit premium reserve, other foreign liabilities and assets of MF companies as at end of the financial year were collected under the survey. The external assets and liabilities of their AMCs were taken from the annual census on foreign liabilities and assets (FLA) of direct investment companies for the reference period.

Meanwhile, foreign liabilities of AMCs increased by US$ 3.4 billion to US$ 6.4 billion in March 2024 due to higher inward direct as well as portfolio investments during the year. Their overseas assets stood low at US$ 0.1 billion. Residents of Japan, Canada and the UK together accounted for 83.0 per cent of FDI among Indian AMCs.

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