Business Standard

Overseas investment cap for domestic mutual funds may be doubled

Sebi may raise the industry-wide limit from $7 bn to $12-15 bn

Overseas investments

Some believe that raising the limit could pose forex-related challenges

Chirag Madia Mumbai
The Securities and Exchange Board of India (Sebi) is considering doubling the overseas investment limit for domestic mutual funds (MFs), a move that will help citizens diversify their investments. According to sources, the market regulator intends to increase the industry-wide limit from $7 billion to $12 billion or $15 billion.

This comes amid a growing trend among domestic fund houses to launch schemes that allow exposure to overseas assets. While the current $7-billion limit is yet to be fully utilised, some players are approaching the cap meant for individual fund houses.

Motilal Oswal Asset Management Company (AMC) has halted lump-sum subscription and

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First Published: Jan 20 2022 | 6:05 AM IST

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