Mutual funds give FEMA reporting a miss, await govt clarity on the issue

Mutual funds have to adhere to restrictions applicable to foreign investment

None of the foreign-owned or controlled mutual funds (MFs) have fulfilled their reporting obligations as mandated by the new Foreign Exchange Management Act (FEMA) norms notified a month ago, pending clarity from the government on the issue. 

“There was a reporting deadline that ended on Friday and the funds had to report according to the changed law. Every day that we don’t report is technically a breach of the new guidelines,” said a senior fund official, on condition of anonymity. 

Fund houses have decided to maintain status quo following assurances from the Securities and Exchange Board of India (Sebi) as well as