The Securities and Exchange Board of India (SEBI) has permitted mutual fund (MF) schemes in India to invest in overseas mutual funds and unit trusts (UTs) with exposure to Indian securities, subject to specific limits.
These overseas funds can hold up to 25% of their assets in Indian securities, ensuring a controlled exposure to the Indian market. SEBI has outlined five key criteria that these overseas funds must adhere to for eligibility. This regulatory update expands investment opportunities while maintaining restrictions to protect Indian investors.