Mutual Funds now have greater opportunity to invest overseas

With a view to providing greater opportunity to invest overseas, the extant ceiling on overseas investments by Mutual Funds, registered with Securities and Exchange Board of India (SEBI), have been enhanced. RBI has increased the aggregate ceiling for overseas investment by Mutual Funds, registered with SEBI, from USD 2 billion to USD 3 billion with immediate effect.

Mutual Funds, registered with SEBI are permitted to invest in ADRs/GDRs of Indian companies, rated debt instruments and also in the equity of overseas companies listed on a recognised stock exchange overseas and having a shareholding of at least ten percent in a listed Indian company. To enable the Mutual Funds to tap a larger investible stock overseas, the requirement of 10 percent reciprocal share holding in the listed Indian companies by such overseas companies was dispensed with by RBI in July 2006.


CLICK FOR MORE FEATURES & STORIES
CLICK FOR MORE MARKET RELATED NEWS