Ch.3 · Custodian and RTA Functions · hard
What are 'Overseas Direct Investments' restrictions on mutual funds under FEMA?
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EXPLANATION
SEBI and RBI jointly regulate overseas investments by Indian mutual funds. There is an industry-wide aggregate limit (periodically revised, was $7 billion) and per-AMC limits for overseas equity investments. When these limits are reached, AMCs temporarily stop accepting inflows into overseas funds. The limits ensure adequate domestic investment and foreign exchange management.
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