Description

PGIM India Mutual Fund temporarily suspends fresh subscriptions and switch-ins for three international fund of funds schemes due to SEBI overseas investment limits.

Summary

PGIM India Asset Management Private Limited has announced temporary suspension of subscriptions in three international fund of funds schemes effective after the cut-off timing of November 17, 2025. This restriction is imposed to comply with SEBI’s overall industry limits for overseas investments (US $7 billion) and overseas ETF limits (US $1 billion). The affected schemes are PGIM India Global Equity Opportunities Fund of Fund, PGIM India Emerging Markets Equity Fund of Fund, and PGIM India Global Select Real Estate Securities Fund of Fund.

Key Points

  • Three designated schemes affected: PGIM India Global Equity Opportunities Fund of Fund, PGIM India Emerging Markets Equity Fund of Fund, and PGIM India Global Select Real Estate Securities Fund of Fund
  • Restrictions effective post cut-off timing of November 17, 2025
  • Lumpsum subscriptions and switch-ins to designated schemes will not be accepted
  • Fresh systematic registrations (SIP/STP) into designated schemes will not be accepted
  • Existing SIP/STP installments as of November 17, 2025 will continue to be processed
  • Switch-outs, redemptions, and SWPs from designated schemes remain unaffected
  • Intra-scheme switches (Regular to Direct) and intra-plan switches (Growth to IDCW) have no impact
  • Restriction is temporary in nature

Regulatory Changes

SEBI Master Circular no. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/90 dated June 27, 2024 specifies:

  • Overall industry limit for overseas investment: US $7 billion
  • Overseas Exchange Traded Fund (ETF) limit: US $1 billion

SEBI letter no. SEBI/HO/OW/IMD-II/DoF3/P/25095/2022 dated June 17, 2022 permits mutual funds to accept subscriptions and invest in overseas funds/securities up to the headroom available without breaching overseas investment limits as of end of day February 1, 2022 at mutual fund level.

Compliance Requirements

For PGIM India Asset Management:

  • Must reject lumpsum subscriptions and switch-ins to designated schemes received post cut-off of November 17, 2025
  • Must reject fresh systematic registrations (SIP/Transfer Plans) into designated schemes
  • Must not trigger switch-out transactions or IDCW transfer out installments post cut-off of November 17, 2025 where designated scheme is the target scheme
  • Must continue processing existing SIP/STP installments registered as of November 17, 2025

For Investors:

  • Unit holders requested to update PAN, KYC, email address, mobile number, and nominee details with AMC
  • Unit holders advised to link PAN with Aadhaar Number
  • Unit holders can view Investor Charter on mutual fund website and check for unclaimed redemptions or IDCW payments

Important Dates

  • November 17, 2025: Cut-off date/time after which subscription restrictions apply to designated schemes
  • February 1, 2022: Reference date for overseas investment limits at mutual fund level (as per SEBI letter dated June 17, 2022)

Impact Assessment

Market Impact:

  • High impact on investors seeking exposure to international equity markets through PGIM India’s fund of funds schemes
  • Restricts fresh capital deployment in global equity opportunities, emerging markets equity, and global real estate securities
  • Reflects broader industry constraint on overseas investment capacity under SEBI limits

Operational Impact:

  • Existing investors with ongoing SIPs/STPs can continue their systematic investments
  • New investors and those planning fresh investments are completely restricted
  • Switch-based portfolio rebalancing into these schemes is not possible
  • Exit options (redemptions, switch-outs, SWPs) remain fully operational

Investor Impact:

  • New investors cannot enter these three international schemes
  • Existing systematic investors can continue but cannot increase investment amounts through new registrations
  • Investors seeking international diversification must look for alternative schemes or fund houses with available headroom
  • Temporary nature of restriction provides hope for resumption when industry limits are revised or headroom becomes available

Impact Justification

High impact as it immediately restricts investor access to three international fund of funds schemes due to regulatory overseas investment limits. Affects new subscriptions, switch-ins, and systematic investment plans.