Description
PGIM India Mutual Fund temporarily suspends fresh subscriptions and systematic investments in three international fund of funds schemes due to SEBI overseas investment limits, effective post cut-off timing of December 10, 2025.
Summary
PGIM India Asset Management has temporarily suspended fresh subscriptions, switch-ins, and new systematic investment plans in three international fund of funds schemes - 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. This action is taken to avoid breaching SEBI’s overseas investment limits of US $7 billion for overall industry and US $1 billion for ETFs. The restrictions apply to transactions received post the cut-off timing of December 10, 2025.
Key Points
- Three PGIM India international fund of funds schemes affected by subscription suspension
- Action taken to comply with SEBI overseas investment limits (US $7 billion overall, US $1 billion for ETFs)
- Fresh lumpsum subscriptions and switch-ins will not be accepted post December 10, 2025 cut-off
- New systematic investment plans (SIPs) and transfer plans will not be accepted
- Existing SIP/STP installments as of December 10, 2025 will continue to be processed
- 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
Regulatory Changes
This circular implements compliance measures based on SEBI Master Circular no. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/90 dated June 27, 2024, which specifies overseas investment limits. SEBI letter no. SEBI/HO/OW/IMD-II/DoF3/P/25095/2022 dated June 17, 2022 permits mutual funds to accept subscriptions up to available headroom without breaching overseas investment limits as of February 1, 2022.
Compliance Requirements
For Investors:
- Cannot make fresh lumpsum investments in the three designated schemes post December 10, 2025 cut-off
- Cannot register new SIPs or transfer plans in these schemes
- Cannot execute switch-ins to these schemes from other funds
- Existing systematic plans will continue as scheduled
- Must update PAN, KYC, email, mobile number, and nominee details with AMC
- Should link PAN with Aadhaar Number
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
Important Dates
- December 10, 2025: Cut-off timing after which subscription restrictions apply
- February 1, 2022: Reference date for overseas investment limit headroom calculation
Impact Assessment
Market Impact:
- Investors seeking international equity and real estate exposure through PGIM India schemes will need to explore alternative investment options
- Reflects broader industry constraint on overseas investments nearing SEBI-mandated limits
- Demonstrates proactive compliance by asset management company to avoid regulatory breach
Investor Impact:
- High impact on investors planning fresh investments in international diversification through these schemes
- Existing investors can continue their systematic plans and are free to redeem without restriction
- Temporary nature suggests resumption once headroom becomes available through redemptions or limit increases
Operational Impact:
- AMC must monitor overseas exposure daily to ensure compliance
- Investment processes and transaction management systems need adjustments to enforce restrictions
- Customer service channels will need to handle inquiries about alternative international investment options
Impact Justification
High importance due to immediate suspension of subscriptions in three international schemes affecting investor access. High impact on investors seeking international exposure through these specific PGIM India fund of funds schemes.