Description

BSE notifies temporary suspension of subscriptions in four Kotak Mahindra overseas equity FOF schemes on the BSE StAR MF Platform from April 30, 2026, with fresh/additional investments capped at ₹1 Lakh per PAN per calendar month per scheme.

Summary

BSE has informed members that Kotak Mahindra Mutual Fund has temporarily suspended fresh subscriptions in four overseas equity Fund of Funds (FOF) schemes on the BSE StAR MF Platform with effect from April 30, 2026. While full subscriptions are suspended, fresh and additional investments up to ₹1 Lakh per PAN per calendar month per scheme are still permitted.

Key Points

  • Four Kotak Mahindra overseas equity FOF schemes are subject to temporary subscription suspension on BSE StAR MF Platform effective April 30, 2026.
  • Fresh/additional lumpsum, switch-in, SIP, and STP-In registrations are capped at ₹1 Lakh per PAN per calendar month per scheme.
  • Existing SIP/STP registrations made before the effective date will continue to be processed by the AMC/RTA without any change.
  • Redemptions, switch-outs, and STP-out transactions remain unrestricted.
  • Subscription transactions triggered to the RTA after April 29, 2026, 3:00 PM will be rejected and amounts refunded subject to receipt of funds from AMC/RTA.

Affected Schemes

  • Kotak Global Emerging Market Overseas Equity Omni FOF
  • Kotak Global Innovation Overseas Equity Omni FOF
  • Kotak International REIT Overseas Equity Omni FOF
  • Kotak Quality Overseas Equity Omni FOF

Regulatory Changes

Pursuant to a request from Kotak Mahindra AMC, BSE has implemented platform-level restrictions on the BSE StAR MF Platform for the above four schemes. The key restriction limits all new subscription-side transactions (lumpsum, SIP, STP-In, switch-in) to ₹1 Lakh per PAN per calendar month per scheme.

Compliance Requirements

  • Members must strictly adhere to the ₹1 Lakh per PAN per calendar month per scheme cap when executing fresh/additional subscription transactions in the affected schemes.
  • Members should not process new subscription transactions above this limit in the four affected Kotak Mahindra FOF schemes.
  • Redemption, switch-out, and STP-out transactions may be executed without restriction.
  • Members should note that subscription transactions sent to RTA after April 29, 2026, 3:00 PM will be rejected.

Important Dates

  • April 29, 2026, 3:00 PM: Cut-off time after which subscription transactions triggered to RTA will be rejected.
  • April 30, 2026: Effective date of temporary subscription suspension and ₹1 Lakh cap on the BSE StAR MF Platform.

Impact Assessment

The restriction affects investors seeking to make large lumpsum or systematic investments in four Kotak Mahindra overseas equity FOF schemes via the BSE StAR MF Platform. The ₹1 Lakh monthly cap per PAN per scheme limits large-ticket investments in these internationally-focused funds. Existing SIP/STP holders are unaffected as their registrations will continue to be processed. Exit liquidity is fully preserved as redemptions and switch-outs remain unrestricted. This is likely driven by SEBI’s overseas investment limits for mutual funds, which periodically require AMCs to suspend fresh overseas fund inflows when industry-wide limits are approached.

Impact Justification

Affects only four specific overseas equity FOF schemes of Kotak Mahindra MF; existing SIP/STP registrations continue unaffected and redemptions/switch-outs remain unrestricted, limiting broader market impact.