Motilal Oswal restricts investments in its international funds

Motilal Oswal has put gates on fresh lump sum investments and switch-ins (transfer of funds from one scheme to another) for three of its international funds - Motilal Oswal Nasdaq 100 FOF, Motilal Oswal S&P 500 Index Fund and Motilal Oswal MSCI Top100 Select Index Fund w.e.f. January 17, 2022. The reason quoted on the notice published by the AMC says that this is on account of limitation of fund house-wise overseas investment exposure as per the SEBI (Securities and Exchange Board of India) rules. What does the SEBI rule say? SEBI has revised the rules regarding overseas investing multiple times by now. As per the most recent circular that came out in June 2021, each fund house can invest a maximum of US $1 billion (roughly Rs 7,400 crore as of today) in overseas markets (excluding foreign ETFs). Further, there is an overall investment limit of US $7 billion for the mutual fund industry as a whole. In the case of investments in overseas ETFs, the amount is capped to US $300 million per AMC and US $1 billion for the industry. As a result of ind