Description

PGIM India Mutual Fund temporarily suspends fresh subscriptions and switch-ins for three international schemes due to SEBI's overseas investment limits, effective after cut-off timing of November 17, 2025.

Summary

PGIM India Mutual Fund has announced temporary restrictions on subscriptions to three of its international Fund of Funds schemes effective after the cut-off timing of November 17, 2025. The restriction is implemented 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

  • Temporary suspension applies to three international Fund of Fund schemes of PGIM India Mutual Fund
  • Fresh lumpsum subscriptions and switch-ins will not be accepted after cut-off timing of November 17, 2025
  • Fresh Systematic Investment Plans (SIPs) and Transfer Plans (STPs) into designated schemes will not be accepted
  • Existing SIP/STP installments as of November 17, 2025 will continue to be processed
  • No new IDCW transfer plans will be accepted if designated schemes are target schemes
  • Redemptions, switch-outs, and Systematic Withdrawal Plans remain unaffected
  • Intra-scheme and intra-plan switches (Regular to Direct, Growth to IDCW) continue normally
  • Restriction is temporary in nature pending headroom availability under SEBI overseas investment limits

Regulatory Changes

The suspension is based on SEBI Master Circular SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/90 dated June 27, 2024, which specifies:

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

SEBI letter 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 only up to the headroom available without breaching the overseas investment limits as of end-of-day February 1, 2022 at the mutual fund level.

Compliance Requirements

For PGIM India Mutual Fund:

  • Must not accept or process lumpsum subscriptions and switch-ins to designated schemes post cut-off of November 17, 2025
  • Must not register fresh SIP/STP into designated schemes
  • Must continue processing existing SIP/STP installments registered before November 17, 2025
  • Must monitor overseas investment headroom to avoid breaching SEBI limits

For Investors:

  • Cannot make fresh lumpsum investments in the three designated schemes
  • Cannot register new SIPs or STPs into these schemes
  • Cannot switch-in from other schemes to designated schemes
  • Must update PAN, KYC, email address, mobile number, and nominee details with AMC
  • Should link PAN with Aadhaar number
  • Should check for unclaimed redemptions or IDCW payments

Important Dates

  • November 17, 2025: Cut-off timing after which fresh subscriptions and switch-ins are suspended
  • February 1, 2022: Reference date for overseas investment headroom calculation (as per SEBI letter dated June 17, 2022)
  • Duration: Restriction is temporary until headroom becomes available under SEBI overseas investment limits

Impact Assessment

Affected Schemes:

  1. PGIM India Global Equity Opportunities Fund of Fund
  2. PGIM India Emerging Markets Equity Fund of Fund
  3. PGIM India Global Select Real Estate Securities Fund of Fund

Market Impact:

  • Investors seeking exposure to global equities, emerging markets, and international real estate through these schemes will need to look for alternative investment options
  • Existing investors can continue their SIP/STP commitments but cannot add fresh lumpsum investments
  • The restriction reflects the broader industry challenge of limited headroom under SEBI’s overseas investment caps
  • Redemptions and exits remain unaffected, providing liquidity to existing unitholders

Operational Impact:

  • AMC must implement transaction controls to block specific transaction types while allowing others
  • Distribution channels must communicate restrictions to investors and intermediaries
  • The temporary nature suggests potential resumption once overseas investment headroom becomes available through industry-wide redemptions or regulatory limit increases

Investor Impact:

  • High impact on new investors wanting international diversification through these specific schemes
  • Medium impact on existing investors who can maintain but not increase positions
  • No impact on investors wanting to exit positions through redemptions or switches to other schemes

Impact Justification

Complete suspension of new subscriptions in three international mutual fund schemes affects investor access to overseas equity exposure. Existing SIP/STP investors can continue, but new investors are blocked due to SEBI overseas investment cap limits.