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On Monday, SEBI allowed mutual funds to restart investing in international securities, provided their overseas investment does not cross the February 1, 2022 level. The communication has led to confusion on whether international funds can receive fresh inflows to the extent of AUM as on February 1, 2022.
On Tuesday, AMFI came out with a clarification that international schemes can receive fresh inflows to the extent of redemption they witness post February 1, 2022 level.
"It is hereby clarified that the AMCs may utilize the headroom available in the overseas investment limit created due to redemptions and consequent sale of overseas securities post February 1, 2022. The basis of overseas investment limit shall be the same as that used for monthly reporting to SEBI," the industry body said in a communication sent to fund houses.
PPFAS MF has said that it will not be able to invest more in overseas markets as it has not made any redemptions recently. "The SEBI letter received yesterday is about reinvesting funds abroad against sales of foreign investments due to redemptions. We have not sold any foreign investments and brought back funds and hence cannot remit funds outside. We will not be investing more in overseas investments pending limit increases," PPFAS MF said.
Motilal Oswal MF has also said that it has not witnessed any major redemption in the past few months and hence will not be able to open its international schemes for subscription.
Edelweiss MF, ICICI Prudential MF and Nippon India MF have resumed subscription in their international schemes. They will be accepting both lumpsum investment and fresh SIP registrations.
