CURRENT AFFAIRS

Detailed explanation-1: -In January 2022, Sebi asked mutual fund houses to stop taking fresh subscriptions in schemes investing in overseas stocks. The directive to stop subscriptions was mainly on account of the mutual fund industry crossing the mandated limit of USD 7 billion for overseas investments.

Detailed explanation-2: -As far as mutual funds are concerned, SEBI formulates policies, regulates and supervises mutual funds to protect the interest of the investors. SEBI notified regulations for mutual funds in 1993. Thereafter, mutual funds sponsored by private sector entities were allowed to enter the capital market.

Detailed explanation-3: -According to the guidelines of SEBI, the overall overseas investment in the mutual fund industry is collectively restricted to up to US$7 billion. Each mutual fund house is permitted to have a maximum foreign investment exposure of up to US$1 billion.

Detailed explanation-4: -The Securities and Exchange Board of India has set an overall industry level limit of USD 7 billion for mutual funds to invest in overseas securities and funds and a separate limit of USD 1 billion for investment in overseas ETFs.

Detailed explanation-5: -50, 000 in mutual funds. If you want to invest more than that then you need to visit the office of CAMS to complete the in-person verification (IPV).