Page 18 - BANKING FINANCE APRIL 2024

MUTUAL FUND

Mutual Fund

ICICI Prudential Commodi- As $1b limit nears, MFs Sebi asks mutual funds to
ties Fund to invest in Silver told to suspend overseas stop fresh subscriptions in

ETFs ETF inflows overseas ETFs from April
ICICI Prudential Mutual Fund has India's capital markets regulator has As the $1 billion investment limit is
changed the fundamental attribute of ordered local mutual fund managers to about to get breached, markets regu-
ICICI Prudential Commodities Fund. stop accepting money in plans that lator Sebi has told asset management
The scheme may also invest in units of invest in overseas exchange traded companies (AMCs) to stop fresh sub-
Silver ETFs in addition to the existing funds (ETFs) as a $1-billion cumulative scriptions in overseas ETFs with effect
asset classes. ICICI Prudential Com- sectoral limit for such investments is from April 1, 2024, according to
modities Fund invests in multiple asset close to being breached. sources aware of the development.
classes like equity, debt, gold ETFs, and RBI regulates the fund inflows and In a communique to mutual fund
REITs among others. outflows involving locally pooled houses, industry body Association of
The changes will be effective from investments in overseas financial Mutual Funds of India (AMFI) has said
May 6, 2024. The fund house informed assets. Currently, there is an overall investments in non-ETF overseas secu-
the unit holders through a notice-cum- industry level limit of $7 billion for rities may continue till further notice.
addendum. investments into overseas mutual The regulator has issued these instruc-
funds, and an additional $1-billion limit tions to AMFI, which in turn, has in-
After the proposed changes, the
for foreign ETFs. formed it to fund houses.
scheme will allocate 80-100% in equity
and equity-related instruments of Sebi has asked the Association of Mutual funds have also been asked to
companies engaged in commodity and Mutual Funds in India (AMFI) to direct value the utilisation of overseas invest-
fund houses to stop accepting money ment limits at the cost of acquisition
commodity-related sectors, 0-20% in
in the relevant ETF-focused plans. and not as per current market prices.
other equity and equity-related
instruments, 0-20% in debt, units of From April 1, these fund managers will
debt mutual fund schemes and money not accept lumpsum money in these Nippon smallcap mutual
market instruments, 0-10% in units plans, while existing systematic fund revises exit load and
issued by REITs and InvITs, and 0-20% investment plans will be paused. Fund
in Gold ETFs/Silver ETFs/ other asset houses can continue to accept money limits subscription
classes as may be permitted by Sebi in plans that invest in overseas Nippon India Mutual Fund has decided
from time to time (subject to securities other than ETFs, which have to revise the exit load and limit sub-
applicable Sebi limits). a separate limit of $7 billion. scriptions in Nippon India Small Cap

16 | 2024 | APRIL | BANKING FINANCE