Description
Edelweiss Mutual Fund limits subscriptions to INR 1 lakh per PAN per day for overseas investment schemes effective August 19, 2025.
Summary
Edelweiss Mutual Fund has imposed a subscription limit of INR 1 lakh per PAN per day for seven designated offshore investment schemes, effective August 19, 2025. This restriction applies to lumpsum investments, switch-ins, SIPs, and STPs due to the AMC’s overseas investment headroom nearing its threshold under SEBI’s February 1, 2022 limits.
Key Points
- Subscription limit: INR 1 lakh per PAN per day effective August 19, 2025
- Applies to lumpsum, switch-in, SIP, and STP transactions
- Seven offshore schemes affected including ASEAN, China, US Technology, and Europe funds
- Existing systematic transactions (SIPs/STPs) remain unaffected
- Transactions reported till August 18, 2025 before cut-off time are not subject to restrictions
Regulatory Changes
Implementation of subscription limits pursuant to SEBI’s overseas investment guidelines dated June 17, 2022, which allow mutual funds to invest in overseas securities up to available headroom without breaching limits set as of February 1, 2022.
Compliance Requirements
- AMC to modify relevant sections of SID/KIM for affected schemes
- Notice-cum-addendum becomes integral part of scheme documents
- Overrides conflicting provisions in existing documentation
Important Dates
- August 19, 2025: Subscription limit effective date
- August 18, 2025: Cut-off for transactions not subject to restriction
- August 13, 2025: Notice date
Impact Assessment
Moderate impact on investor accessibility for offshore schemes. Existing systematic investments continue uninterrupted, limiting disruption. New investors or those seeking large investments may face constraints in accessing these international diversification options through Edelweiss schemes.
Impact Justification
Subscription limits affect investor accessibility but only for specific offshore schemes