Description
PGIM India Mutual Fund temporarily suspends fresh subscriptions and switch-ins to three international schemes due to SEBI overseas investment limits.
Summary
PGIM India Asset Management has imposed temporary restrictions on subscriptions to three international fund of fund schemes effective post cut-off timing of November 17, 2025. The restriction is necessitated to comply with SEBI’s overall industry limit of US $7 billion for overseas investments and US $1 billion for overseas ETF investments. 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
- Fresh lumpsum subscriptions and switch-ins to the three designated schemes will not be accepted post November 17, 2025 cut-off timing
- Fresh Systematic Investment Plan (SIP) and Transfer Plan registrations into these schemes will not be accepted
- Existing SIP/STP installments as of November 17, 2025 will continue to be processed
- Switch-outs, redemptions, and Systematic Withdrawal Plans (SWP) from these schemes remain unaffected
- Intra-scheme and intra-plan switches within the designated schemes will continue without impact
- SEBI has specified overall industry limits: US $7 billion for overseas investments and US $1 billion for overseas ETFs
- The 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 established overall industry limits for overseas investments. SEBI letter no. SEBI/HO/OW/IMD-II/DoF3/P/25095/2022 dated June 17, 2022 permits Mutual Funds to accept subscriptions up to the headroom available without breaching overseas investment limits as of end-of-day February 1, 2022 at Mutual Fund level. This circular implements temporary restrictions to ensure compliance with these prescribed limits.
Compliance Requirements
For PGIM India Asset Management:
- Must reject fresh lumpsum subscriptions received post November 17, 2025 cut-off for the three designated schemes
- Must not accept new SIP/STP registrations targeting these schemes
- Must not process switch-out transactions or IDCW transfer transactions where designated schemes are target schemes, if received post cut-off
- Must continue processing existing SIP/STP installments registered before November 17, 2025
- Must monitor overseas investment limits to determine when restrictions can be lifted
For Investors:
- Cannot make fresh investments or switch-ins to the three affected international schemes
- Cannot register new SIPs or STPs into these schemes
- Can continue existing SIP/STP installments
- Can redeem, switch-out, or register/continue SWPs without restriction
- Should update PAN, KYC, email, mobile number, and nominee details with AMC
- Should link PAN with Aadhaar Number
Important Dates
- November 17, 2025: Cut-off timing after which subscription restrictions take effect
- February 1, 2022: Reference date for overseas investment limits (as per SEBI letter dated June 17, 2022)
- June 27, 2024: Date of SEBI Master Circular establishing overseas investment limits
- June 17, 2022: Date of SEBI letter permitting investments up to available headroom
Impact Assessment
Impact on Investors: High impact on investors seeking to invest in international markets through these fund of funds schemes. Fresh investors are completely blocked from entering these schemes, and existing investors cannot add to their positions through lumpsum or new SIP routes. However, existing SIPs continue, providing some continuity for current investors.
Impact on Fund House: Significant operational impact as PGIM India must turn away new business in three international schemes. This affects AUM growth potential and new investor acquisition for these products. The fund house must implement systems to reject applicable transactions while ensuring existing commitments are honored.
Market Impact: Reflects industry-wide constraint on overseas investments as multiple fund houses approach SEBI-prescribed limits. This indicates strong investor appetite for international diversification and potential capacity constraints in the overseas investment allocation framework. The temporary nature suggests the industry is seeking resolution through regulatory dialogue or limit adjustments.
Affected Schemes:
- PGIM India Global Equity Opportunities Fund of Fund
- PGIM India Emerging Markets Equity Fund of Fund
- PGIM India Global Select Real Estate Securities Fund of Fund
Impact Justification
Immediate suspension of fresh investments in three international mutual fund schemes affects investor subscription ability and fund accessibility due to regulatory overseas investment limits