Securities and Exchange Board of India

On 17th May, 2024, Securities and Exchange Board of India (SEBI) suggested allowing domestic mutual funds to invest in overseas funds with limited exposure to Indian securities.

Currently, SEBI registered mutual funds have various options for investing in overseas securities.
Overseas funds' exposure to Indian securities should not exceed 20% of their net assets.
Indian securities offer attractive investment opportunities for foreign funds due to India's strong economic growth prospects.
Examples include the MSCI Emerging Markets Index (MEMI) and JP Morgan's 'Emerging Markets Opportunities Fund'.
MEMI's exposure to Indian securities has steadily increased over the years.
Proposed measures include an observance period for monitoring portfolio rebalancing and ensuring transparency in portfolio disclosure by overseas funds.