India's SEBI permits mutual funds to invest in overseas funds, capping exposure to Indian securities at 25%.

India's Securities and Exchange Board (SEBI) has introduced guidelines allowing mutual funds to invest in overseas mutual funds or unit trusts, provided their exposure to Indian securities does not exceed 25%. This aims to enhance investment ease, transparency, and diversification. All investors' contributions must be pooled into a single vehicle, and advisory agreements between Indian and overseas funds are prohibited to avoid conflicts of interest. A six-month period for rebalancing is allowed if the limit is breached.

November 04, 2024
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