INVESTMENT BY MFs IN OVERSEAS SECURITIES – LIBERALISATION

Presently, Mutual Funds (MFs), registered with Securities and Exchange Board of India (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 recognized stock exchange overseas. To enable the MFs to tap a larger investible stock overseas, it has been decided that they may also invest in (i) Overseas MFs that make nominal investments (say to the extent of 10% of net asset value) in unlisted overseas securities; (ii) Overseas exchange traded funds that invest in securities; and (iii) ADRs/GDRs of foreign companies.