Description

Edelweiss Mutual Fund reduces subscription limit to INR 1 lakh per PAN per day for 7 offshore schemes due to overseas investment headroom constraints.

Summary

Edelweiss Mutual Fund has imposed a subscription limit of INR 1 lakh per PAN per day across all transaction types for seven designated offshore schemes, effective August 19, 2025. This restriction is implemented due to the AMC’s overseas investment headroom nearing its threshold as per SEBI’s February 1, 2022 limits.

Key Points

  • Subscription limit of INR 1 lakh per PAN per day applies to lumpsum, switch-in, SIP, STP transactions
  • Restriction effective from August 19, 2025 based on transaction reporting date
  • Existing systematic transactions (SIPs/STPs) remain unaffected
  • Seven offshore schemes covered under this restriction
  • Transactions reported till August 18, 2025 before cut-off time are exempt

Regulatory Changes

This action follows SEBI’s letter dated June 17, 2022 (SEBI/HO/OW/IMD-II/DOF3/25095/2022) which allowed mutual funds to resume overseas investments up to available headroom without breaching the February 1, 2022 limits at mutual fund level.

Compliance Requirements

  • AMC to implement daily subscription monitoring per PAN
  • Updated SID/KIM documentation for affected schemes
  • Investor communication and notice requirements fulfilled

Important Dates

  • August 19, 2025: Subscription limit becomes effective
  • August 18, 2025: Cut-off date for exempt transactions
  • August 13, 2025: Notice date

Affected Schemes

  1. Edelweiss ASEAN Equity Off-shore Fund
  2. Edelweiss Greater China Equity Off-shore Fund
  3. Edelweiss US Technology Equity Fund of Fund
  4. Edelweiss Emerging Markets Opportunities Equity Offshore Fund
  5. Edelweiss Europe Dynamic Equity Offshore Fund
  6. Edelweiss US Value Equity Off-shore Fund
  7. Edelweiss MSCI India Domestic & World Healthcare 45 Index Fund

Impact Assessment

Medium impact on investors seeking exposure to international markets through these specific Edelweiss schemes. Large investors may need to spread investments across multiple days or consider alternative offshore investment options. The restriction helps ensure compliance with regulatory overseas investment limits while maintaining fund operations.

Impact Justification

Affects investor access to specific mutual fund schemes but limited to one AMC and offshore funds