This article examines SEBI's new framework, issued in 2024, allowing Indian mutual funds to invest in overseas mutual funds and unit trusts with up to 25% exposure to Indian securities, facilitating global diversification while ensuring domestic stability. Key conditions include:
‣ Pooled Investment Vehicles
‣ Equal Investor Rights
‣ Independent Fund Management
‣ Mandatory Quarterly Disclosures
In cases where an overseas fund exceeds the 25% Indian securities cap, SEBI mandates a six-month rebalancing period, followed by a liquidation period if compliance isn't met. Non-compliance leads to penalties, such as halting new subscriptions and scheme launches. This structured approach creates a transparent and secure investment environment, enabling Indian mutual funds to access international markets responsibly.
