ARTICLE · 05 SEPTEMBER 2006

Liberalization Of Overseas Investment By Mutual Funds

Mulla & Mulla & Craigie Blunt & Caroe

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At present Mutual Funds registered with the Securities and Exchange Board of India (SEBI), are entitled to invest in American Depository Receipts (ADRs) / Global Depository Receipts (GDRs) issued by Indian companies, rated debt instruments and in the equity of overseas companies listed on a recognised overseas stock exchange with a shareholding of not less than ten percent in a listed Indian company.

IndiaFinance and Banking

Shardul Thacker

At present Mutual Funds registered with the Securities and Exchange Board of India (SEBI), are entitled to invest in American Depository Receipts (ADRs) / Global Depository Receipts (GDRs) issued by Indian companies, rated debt instruments and in the equity of overseas companies listed on a recognised overseas stock exchange with a shareholding of not less than ten percent in a listed Indian company.

In accordance with the proposal of the Finance Ministry, GOI, SEBI has vide its Circular dated 2^nd August 2006, liberalized overseas investments by registered Mutual Funds by raising the existing aggregate ceiling from USD 1 billion to USD 2 billion for overseas investment by Mutual Funds with immediate effect.

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