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MP Guru
MUTUAL FUND NEWS
The Association of Mutual Funds in India appointed committee has submitted a report on overseas investments by MFs to the Securities and Exchange Board of India, AMFI chief AP Kurian has said, reports The Financial Express.
Kurian, however, did not disclose details of the report. The finance minister in his Budget for 2006-07, (April-March) enhanced the investment limit in overseas securities to $2 billion from $1 billion and also removed the reciprocal holding of 10%.
According to earlier norms, mutual funds were allowed to invest in only such global companies, which hold 10% of their Indian subsidiary. Following the removal of 10% reciprocal shareholding, mutual funds now have a wider access to top global companies, compared with only around 45 such companies previously.
The country’s largest mutual fund, UTI Mutual, was already seeking regulatory approvals from SEBI and the RBI for investing in global companies that did not meet the 10% reciprocal holding norm. Further, mutual funds can now also invest in foreign exchange traded funds to the extent of $1 billion.
The Association of Mutual Funds in India appointed committee has submitted a report on overseas investments by MFs to the Securities and Exchange Board of India, AMFI chief AP Kurian has said, reports The Financial Express.
Kurian, however, did not disclose details of the report. The finance minister in his Budget for 2006-07, (April-March) enhanced the investment limit in overseas securities to $2 billion from $1 billion and also removed the reciprocal holding of 10%.
According to earlier norms, mutual funds were allowed to invest in only such global companies, which hold 10% of their Indian subsidiary. Following the removal of 10% reciprocal shareholding, mutual funds now have a wider access to top global companies, compared with only around 45 such companies previously.
The country’s largest mutual fund, UTI Mutual, was already seeking regulatory approvals from SEBI and the RBI for investing in global companies that did not meet the 10% reciprocal holding norm. Further, mutual funds can now also invest in foreign exchange traded funds to the extent of $1 billion.