Sponsored
    Follow Us:
Sponsored

SECURITIES AND EXCHANGE BOARD OF INDIA
MUTUAL FUND DEPARTMENT
Mittal Court, A Wing, Gr. Floor,
224, Nariman Point, Mumbai 400 021

MFD/CIR No.5/ 062 /99
September 30, 1999

To:

All Mutual Funds registered with SEBI/
Unit Trust of India

Dear Sir,

Re.: Investments in ADRs/GDRs by Mutual Funds.

This has reference to our circular MFD/CIR No. 4/052/99 dated September 1, 1999 permitting all mutual funds to invest in ADRs/GDRs initially within overall limit of US$500 mn. with a sub-ceiling for individual mutual fund which should not exceed 10% of the net assets managed by them as on the date of the last audited balance sheet, subject to a minimum of US $20 mn. and a maximum of US$50 mn. per mutual fund.

As it was felt that the sub limits prescribed for individual funds were too restrictive and consequently only a few mutual funds would be able to invest in ADRs/GDRs, SEBI had taken up the matter with the RBI. It has now been decided to permit mutual funds to invest in ADRs/GDRs without any minimum investment requirement. Therefore, all mutual funds may now invest in ADRs/GDRs upto 10% of the net assets managed by them as on the date of the last audited balance sheet subject to a maximum of US$50 mn.

You are advised to forward us your proposal for undertaking such investments and the amount which is proposed to be invested by your schemes in ADRs/GDRs. The proposal should also give details of the modalities for making such investments and engaging the services of overseas intermediaries, if any. In case investments are proposed to be made by an existing scheme, the proposal should also specify whether these investments are consistent with the investment objectives of the scheme and the offer document provides for investments in overseas securities.

Yours Faithfully,

P.K. Nagpal
DIVISION CHIEF
MUTUAL FUNDS DEPARTMENT

Sponsored

Join Taxguru’s Network for Latest updates on Income Tax, GST, Company Law, Corporate Laws and other related subjects.

Leave a Comment

Your email address will not be published. Required fields are marked *

Sponsored
Sponsored
Search Post by Date
July 2024
M T W T F S S
1234567
891011121314
15161718192021
22232425262728
293031