Enhancement of overseas investment limit for individual fund houses

Enhancement of overseas investment limit for individual fund houses

Question : Up to how much has SEBI increased the foreign investment limit for mutual fund houses ?
a. Up to 1 billion dollar
b. Up to 2 billion dollar
c. Up to 3 billion dollar
d. Up to 4 billion dollar
Ans. a.

  • Recently(June 2021) the SEBI has increased the foreign investment limit for mutual fund houses upto 1 billion dollar.
  • This limit was earlier at 600 million dollars.
  • The overall mutual fund industry limit is capped at USD 7 billion, the Securities and Exchange Board of India (Sebi) said in a circular.
  • The increase in the limit would allow mutual funds to allocate a higher share of their corpus for foreign securities.

Link:
https://www.sebi.gov.in/legal/circulars/jun-2021/circular-on-enhancement-of-overseas-investment-limits_50415.html