The five international stock investment schemes' five lump-sum subscriptions, switch-ins, and new registrations of systematic investment plans and systematic transfer plans have been halted by the fund house.
After restarting inflows into its overseas funds a month ago, Nippon India Mutual Fund (MF) has chosen to cease making new investments since the fund company is almost at its investment cap.
The five international stock investment schemes' five lump-sum subscriptions, switch-ins, and new registrations of systematic investment plans and systematic transfer plans have been halted by the fund house.
The fund management had announced on June 22 that it had restarted inflows into these programmes. The action was taken in response to instructions from the Securities and Exchange Board of India (Sebi) allowing fund firms with new investment space to restart subscriptions to their international market investment schemes.
The fund company announced on Wednesday that it was resuming investment suspensions in the Nippon India US Equity Opportunities Fund, Nippon India Japan Equity Fund, Nippon India Taiwan Equity Fund, Nippon India Multi-Asset Fund, and Nippon India ETF Hang Seng BeES.
"The available foreign investment limits have been substantially utilised after the subscription to some Nippon India MF plans dealing in overseas assets was resumed." We thus intend to halt the lump-sum subscription to prevent exceeding the offshore investment cap, which the fund firm stated in its announcement.
After the $7 billion industry-wide investment barrier was exceeded on January 31, Sebi issued a directive to fund houses ordering them to halt taking new investments into offshore schemes.
The restriction on new inflows was only abolished after a gap of nearly five months for fund houses whose overseas investment limitations had been set as a result of redemptions and subsequent sales of foreign securities.
The Association of Mutual Funds in India, a trade group, has stated that each fund house's overall utilisation of the foreign investment limit should be limited to the amount as of February 1.
The overall assets under management (AUM) for overseas funds decreased from Rs 42,689 crore at the end of January to Rs 38,999 crore in May, according to data from Value Research. AUM has decreased further as a result of this month's substantial loss in market value.
