Sebi advises mutual funds to stop subscriptions into overseas funds

Securities and Exchange Board of India (Sebi) has advised Mutual Fund (MF) houses to stop subscription in the schemes intending to invest in overseas securities. The move comes as the industry is likely to breach the $7 billion-mark.

However, the investments in overseas exchange traded funds (ETFs) may continue till further communication. The announcement might impact several schemes that invest in foreign stocks.

Industry participants say that Association of Mutual Funds in India (Amfi) will send a detailed communication along with an addendum that will be released soon.

“Amfi has also requested the Reserve Bank of India (RBI) to enhance the industry limits,