DSP Mutual Fund stops fresh inflow in six schemes
DSP Mutual Fund said it has stopped accepting inflows into its six schemes with international mandates.
The six schemes are – DSP US Flexible Equity Fund, DSP Global Allocation Fund, DSP World Gold Fund, DSP World Mining Fund, DSP World Agriculture Fund and DSP World Energy Fund.
The move comes after markets regulator Sebi directed mutual fund houses to stop taking fresh subscriptions in schemes investing in overseas stocks.
The directive to stop subscription is mainly on account of the mutual fund industry crossing the mandated limit of USD 7 billion for overseas investments.
“In view of the impending breach of the industry-wide overseas investment limit of USD 7 billion as currently permitted by RBI, Sebi has directed all asset management companies to stop accepting fresh inflows in schemes, which have the mandate to invest in overseas securities without the optionality to invest in Indian securities,” the fund house said in a statement.
“Mutual funds can make overseas investments subject to a maximum of USD 1 billion per mutual fund, within the overall industry limit of USD 7 billion,” Sebi had said.
