SEBI Eases Investment Framework for Mutual Funds Overseas

The Securities and Exchange Board of India (SEBI) has introduced a new framework allowing mutual funds to invest in overseas funds with a cap on Indian securities exposure. This move facilitates smoother investment processes, ensures portfolio equality, and prohibits advisory conflicts between Indian and overseas mutual funds.

The Securities and Exchange Board of India (SEBI) has granted permission for mutual funds to invest in overseas funds or unit trusts, provided a specific portion of the assets is allocated to Indian securities.

This comes with a condition that such overseas funds can have no more than 25% of their net assets in Indian securities to ensure diversified investment avenues and greater transparency, as outlined in SEBI's recent circular.

The regulatory framework, effective immediately, aims to streamline investment practices for Indian mutual funds, ensuring equal investment rights and barring advisory conflicts with overseas counterparts.

(With inputs from agencies.)