SEBI has now doubled Mutual Funds' foreign investment limit

The Securities and Exchange Board of India (SEBI) raised the investment limit for Mutual Funds (MFs) from the existing $300 million to $600 million. Mutual Funds can now make investments of up to $200 million per fund house in Foreign Exchange Traded Funds (ETFs) with the overall industry limit being $1billion. Earlier, the investment limit was $50 million. The SEBI has also said that Mutual Funds launching new schemes intending to invest in ETFs should ensure that the scheme documents disclose the investment amount.