INVESTMENT IN ADRS/GDRS/ FOREIGN SECURITIES BY MUTUAL FUNDS

Pursuant to the enhancement in overseas investment limits by RBI, it has now been decided that mutual funds can invest in ADRs/GDRs/Foreign Securities within overall limit of US$3 bn. This will be a with a sub-ceiling for individual mutual funds which should not exceed 10% of the net assets managed by them as on March 31 of each relevant year and subject to a maximum of US $150 mn. per mutual fund.