• India
  • Business
  • World
  • Politics
  • Sports
  • Technology
  • Entertainment
  • Auto
  • Lifestyle
More
Hindi Tamil Telugu
More
In the news
Narendra Modi
Amit Shah
Box Office Collection
Bharatiya Janata Party (BJP)
OTT releases
Hindi Tamil Telugu
User Placeholder

Hi,

Logout

India
Business
World
Politics
Sports
Technology
Entertainment
Auto
Lifestyle
Inspirational
Career
Bengaluru
Delhi
Mumbai

Download Android App

Follow us on
  • Facebook
  • Twitter
  • Linkedin
Home / News / Business News / Mutual funds demand easing RBI's limit on overseas investments
Summarize
Next Article
Mutual funds demand easing RBI's limit on overseas investments
Despite the mutual fund industry's lobbying for higher limits, RBI has not indicated any willingness to revise its stance

Mutual funds demand easing RBI's limit on overseas investments

By Pratyaksh Srivastava
Mar 22, 2024
04:25 pm

What's the story

The Securities and Exchange Board of India (SEBI) has mandated mutual funds to cease accepting subscriptions for investments in foreign exchange-traded funds (ETFs) from April 1, 2024.

This directive, dispatched on March 20 to the Association of Mutual Funds in India (AMFI), is designed to avert exceeding the $1 billion cap on such investments.

Now, there are demands to raise the overseas limits on the same.

The demand

Growing demand for higher overseas investment limits

This directive emerges amid escalating calls for an increase in the foreign investment limit enforced by the Reserve Bank of India (RBI).

The existing limit, established in 2007-08, has been fully utilized by mutual funds for over two years without any augmentation from the RBI.

This has resulted in missed opportunities like NVIDIA Corporation's share price skyrocketing by 245% within a year.

You're
25%
through

Valuation

Indian mutual funds' foreign equity assets hold high value

The foreign equity assets of Indian mutual funds, which include international fund of funds (FoFs), direct equities, international ETFs, and domestic equity schemes, are currently estimated at over Rs. 70,000 crore.

Despite this substantial valuation and repeated appeals from the mutual fund sector, the RBI has remained firm on its stance against raising investment limits.

You're
50%
through

Industry calls

Industry leaders champion higher investment limits

Nilesh Shah, Managing Director of Kotak Mutual Fund, advocated for a higher limit, referencing increasing forex reserves.

He pointed out that money invested in foreign securities via mutual funds can be repatriated to India, unlike funds transferred through the Liberalised Remittance Scheme (LRS).

Pratik Oswal, head of passive funds at Motilal Oswal AMC, also endorsed a "calibrated" increase in limits and underscored the advantages of investing in international stocks via mutual funds.

You're
75%
through

RBI's stance

RBI's position on investment limits remains steadfast

Despite the mutual fund industry's lobbying for higher limits, the RBI has not indicated any willingness to revise its stance.

Some industry insiders believe that SEBI backs their proposal to raise the limits, but the ultimate decision lies with the RBI.

Economists propose that the central bank's cautious approach is intended to prevent capital outflow and safeguard retail investors.

Done!
Facebook
Whatsapp
Twitter
Linkedin
Related News
Latest
Mutual Funds
Securities and Exchange Board of India
Reserve Bank Of India (RBI)

Latest

IPL 2025, Faf du Plessis leads DC versus PBKS: Details Faf du Plessis
Israeli soldiers used human shields in Gaza, report claims Hamas
Woman leaves son as collateral for loan; finds him dead Andhra Pradesh
BJP could win majority in Karnataka today: Survey report Bharatiya Janata Party (BJP)

Mutual Funds

#FinancialBytes: Know how to select best mutual fund for you Personal Finance
#FinancialBytes: 5 reasons why you should invest in mutual funds India
Government would take measures to ensure liquidity in NBFCs: Jaitley Reserve Bank Of India (RBI)
#FinancialBytes: How to choose the best tax-saving mutual fund? Business

Securities and Exchange Board of India

Probe Hindenburg Research and those who made fortunes: Harish Salve  Harish Salve
Top 100 companies must verify rumors, says SEBI: Here's why  Finance
SEBI is probing Adani Group's offshore deals: Know why Adani Group
SEBI denies allegations of investigating Adani Group since 2016 Supreme Court Of India

Reserve Bank Of India (RBI)

ESMA, RBI negotiating to resolve domestic bond trading platform discrepancies Business
HDFC Bank's 3% decline triggers 750-point fall in Nifty Bank   HDFC Bank
Zomato receives RBI approval for payment aggregator license in India Zomato
RBI approves LIC's acquisition of 9.99% stake in HDFC Bank Life Insurance Corporation of India
Indian Premier League (IPL) Celebrity Hollywood Bollywood UEFA Champions League Tennis Football Smartphones Cryptocurrency Upcoming Movies Premier League Cricket News Latest automobiles Latest Cars Upcoming Cars Latest Bikes Upcoming Tablets
About Us Privacy Policy Terms & Conditions Contact Us Ethical Conduct Grievance Redressal News News Archive Topics Archive Download DevBytes Find Cricket Statistics
Follow us on
Facebook Twitter Linkedin
All rights reserved © NewsBytes 2025