Investors will not be able to start fresh SIPs or invest lumpsum amount in PPFAS MF's flexicap scheme from February 2, 2022, the fund house announced on Sunday.
The decision will have no effect on existing SIPs and STPs, which means SIP and STP accounts opened on or before February 2, 2022 will continue as usual.
"It may be noted that transactions as mentioned below (lumpsum and fresh SIP/STP) received post the cut off timing of February 01, 2022 shall not be accepted and processed," the fund house said.
The decision comes after SEBI directed fund houses to stop taking fresh subscriptions in schemes investing in overseas stocks. The notice was sent by SEBI after the Indian mutual fund industry crossed the mandated limit of $7 billion for overseas investments.
SEBI norms say that a fund house can make a maximum $1 billion investment in overseas markets. The limit of the overall industry stands at $7 billion.
PPFAS Flexicap Fund invests up to 35% of its corpus in foreign stocks, primarily stocks of US technology companies.
Motilal Oswal MF was the first fund house to stop lumpsum investment into its overseas schemes — Motilal Oswal S&P 500 Index Fund, Motilal Oswal NASDAQ 100 Fund of Funds (FoF) and Motilal Oswal MSCI EAFE Top 100 Index fund.
