SEBI/HO/IMD/IMD -PoD -1/P/CIR/149 — THE SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992

CIRCULAR SEBI/HO/IMD/IMD -PoD -1/P/CIR/149 To All Mutual Funds All Asset Management Companies (AMCs) All Trustee Companies/ Boards of Trustees of Mutual Funds Association of Mutual Funds in India (AMFI) All Custodians Dear Sir/Madam, Subject: Investments in Overseas Mutual Funds/ Unit Trusts by Indian Mutual Funds Mutual Funds are permitted to invest in overseas securities as specified under paragraph 12.19.2 of the SEBI Master Circular no. SEBI/HO/IMD/IMD-PoD1/P/CIR/2024/90 dated June 27, 2024 (hereinafter referred to as 'Master Circular') , which also includes investment in overseas Mutual Funds/Unit Trusts ( ' MF/UTs ' ) . In order to facilitate ease of investment in overseas MF/UTs , to bring transparency in the manner of investment, and to enable Mutual Funds to diversify their overseas investments, the following has been decided based on feedback received from the industry, consultation with Mutual Fund Advisory Committee and public consultation: Investment by schemes: 2.1. In terms of paragraph 12.19.2.10 of the Master Circular, Indian Mutual Fund schemes may also invest in overseas MF/UTs that have exposure to Indian securities, provided that the total exposure to Indian securities by these overseas MF/UTs shall not be more than 25% of their assets. November 04, 2024 2.2. While investing in overseas MF/UTs that have exposure to Indian securities, the Indian Mutual Fund schemes shall ensure the following: 2.2.1.Pooling: Contribution of all investors of the overseas MF/UT is pooled into a single investment vehicle, with no side-vehicles including segregated portfolios, sub-funds or protected calls, etc . 2.2.2.Pari -passu and Pro-rata: Corpus of the overseas MF/UT is a blind pool (i.e. common portfolio) with no segregated portfolios. All investors in the overseas