To manage forex volatility, SEBI and RBI have imposed strict caps on overseas mutual fund investments:
- Industry-wide cap: USD 7 billion
- AMC-specific cap: USD 1 billion
- ETF-specific cap: USD 1 billion
Impact:
- 70+ international schemes affected
- Partial reopening possible based on redemptions
Investor Alternatives:
- MNC Funds (Indian-listed global subsidiaries)
- Liberalised Remittance Scheme (LRS)
- AIFs and VCFs with expanded overseas limits
