SEBI has enhanced the overseas investment limit per fund house to $1 billion from the existing $600 million. The overseas investment limit for the industry has been kept unchanged at $7 billion.
This implies that though each mutual fund can now invest more in overseas markets, they still have to make sure that the combined industry investment does not exceeds $7 billion.
A Balasubramanian, MD & CEO of Aditya Birla Sun Life MF welcomed the move, saying it was pending for quite some time. "Indian investors want to diversify. There is growing appetite for foreign assets. Therefore, the increase in limit comes at a good time," he said.
In a circular issued on Thursday, the regulator also increased the investment limit in overseas ETFs to $300 million per mutual fund from $200 million earlier. The overall industry limit remains at $1 billion.
This is the second such increase in overseas investment limit within a year. In November last year, SEBI had hiked the limit per fund house to $600 million from $300 million.
Interestingly, the industry limit was kept unchanged even then.
