The fund house informed its participants of this through a notice cum addendum.
The time restriction applies to the schemes mentioned below:
DSP Global Innovation Fund Fund
DSP Global Allocation Fund Fund
DSP Global Clean Energy Fund Fund DSP Global Agriculture Fund DSP US Flexible Equity Fund Fund
DSP World Gold Fund Fund
DSP World Mining Fund
Any incremental investment to be made by the designated employees under clause 6.10 of the SEBI Master Circular will be made in units of those schemes whose risk value as per the risk meter is equivalent or higher than that of these schemes.
This move came as a precautionary measure to avoid defaulting on the DSP mutual fund level cap from February 1, 2022.
SEBI had specified an overall industry limit for overseas investment at US$7 billion and a limit on overseas exchange-traded funds (ETF(s) at US$1 billion. Video Email from SEBI dated January 28, 2022 and AMFI video email dated January 30, 2022, directed to AMC to temporarily restrict subscription in schemes seeking to invest in foreign securities from February 2, 2022 , to avoid non-compliance with industry-wide overseas investment limits as permitted by the RBI.
In this regard, SEBI vide its letter no. SEBI/HO/OW/IMD-II/DOF3/P/25095/2022 dated June 17, 2022 had informed AMFI that mutual fund schemes can resume subscriptions and make investments in foreign funds/securities up to the available margin without violating foreign investment limits. at the end of the day February 1, 2022 at the Mutual Fund level.
Further, SEBI’s video email dated March 19, 2024 and AMFI’s video email dated March 20, 2024, directed AMCs to temporarily restrict subscription in schemes seeking to invest in overseas exchange-traded funds (ETFs) from April 1, 2024 to avoid defaults. of industry-wide limits for investment in foreign ETFs as permitted by the Reserve Bank of India (RBI) and as defined in clause 12.19 of the SEBI Master Circular.
The above mentioned change will supersede the conflicting provisions, if any, and will form an integral part of the SID and KIM of the applicable schemes of the Fund, as amended from time to time. All other provisions of the SID and KIM of the applicable schemes of the Fund, except as specifically modified herein above, remain unchanged.
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