Sebi asks mutual funds to stop fresh subscriptions in overseas ETFs from April

As the $1 billion investment limit is about to get breached, markets regulator Sebi has told asset management companies (AMCs) to stop fresh subscriptions in overseas ETFs with effect from April 1, 2024, according to sources aware of the development.

In a communique to mutual fund houses, industry body Association of Mutual Funds of India (AMFI) has said investments in non-ETF overseas securities may continue till further notice. The regulator has issued these instructions to AMFI, which in turn, has informed it to fund houses.

Mutual funds have also been asked to value the utilisation of overseas investment limits at the cost of acquisition and not as per current market prices.