Description

ICICI Prudential Trust Limited has discontinued fresh lump sum subscriptions, SIP and STP registrations in three schemes — US Bluechip Equity Fund, Nasdaq 100 Index Fund, and Strategic Metal and Energy Equity Fund of Funds — effective March 2, 2026, likely due to overseas investment limit constraints.

Summary

ICICI Prudential Trust Limited has approved the discontinuation of fresh subscriptions (lump sum, switches, SIP registrations, and STP registrations as target schemes) in three mutual fund schemes effective March 02, 2026. The affected schemes invest in overseas equities and thematic sectors. The move is likely driven by SEBI-mandated overseas investment limits. Existing systematic transactions will continue, and redemptions/switch-outs remain fully operational.

Key Points

  • Fresh lump sum subscriptions (including switches-in) are discontinued in the three affected schemes from March 02, 2026.
  • New SIP and STP registrations (where the affected schemes are target schemes) are also discontinued.
  • Special products discontinued: Freedom SIP, SIP Top Up, Booster SIP, Flex STP, Booster STP, Capital Appreciation STP, and Transfer-in of IDCW.
  • Existing systematic transaction instalments will continue to be processed per scheme documents and SEBI/AMFI conditions.
  • Redemptions, switch-outs, existing STP-Out, and SWP registrations are unaffected and will continue.
  • The AMC may resume subscriptions if overseas investment limits become available or SEBI/AMFI issues relevant clarifications.

Regulatory Changes

This notice-cum-addendum amends the Scheme Information Documents (SIDs) and Key Information Memorandums (KIMs) of the three affected schemes. The discontinuation is consistent with SEBI’s overseas mutual fund investment limits framework, under which AMCs must halt fresh inflows once the prescribed aggregate limit is reached.

Compliance Requirements

  • Distributors and Advisors: Must immediately stop accepting new subscription/SIP/STP applications for the three affected schemes.
  • Registrar & Transfer Agents (RTAs): Must block fresh subscription transactions and new systematic registration requests for these schemes effective March 02, 2026.
  • Investors: Cannot make new investments (lump sum or systematic) in these schemes until further notice; however, they may continue existing SIPs/STPs and redeem freely.

Important Dates

  • Effective Date of Discontinuation: March 02, 2026
  • Notice Date: February 27, 2026
  • Reference Number: No. 010/02/2026

Impact Assessment

Affected Schemes:

  1. ICICI Prudential US Bluechip Equity Fund
  2. ICICI Prudential Nasdaq 100 Index Fund
  3. ICICI Prudential Strategic Metal and Energy Equity Fund of Funds

All three schemes have significant overseas exposure, making them subject to SEBI’s aggregate overseas investment ceiling for the mutual fund industry. This is a recurring industry-wide issue when overseas limits are exhausted. Existing investors are not impacted in terms of portfolio management or liquidity — redemptions remain open. New investors or those wishing to increase exposure to these schemes will need to wait for limit reinstatement. The measure is expected to be temporary, contingent on SEBI/AMFI enhancing or redistributing overseas investment limits.

Impact Justification

Affects investors in three specific ICICI Prudential schemes with overseas/thematic exposure; existing investors can continue SIPs and redemptions, but no new subscriptions are allowed. Impact is contained to these schemes and is potentially temporary pending SEBI/AMFI limit clarifications.