Description

BSE implements subscription restrictions on Franklin Asian Equity Fund and Franklin U.S. Opportunities Equity Active Fund of Funds, capping lump sum purchases at ₹5,00,000 per PAN per month effective May 18, 2026.

Summary

BSE has implemented subscription restrictions on two Franklin India Mutual Fund schemes on the BSE StAR MF Platform, effective May 18, 2026. Fresh/additional purchases via lump sum and switch-in are capped at ₹5,00,000 per PAN per month, while new SIP/XSIP registrations are limited to ₹50,000 per PAN per month. Orders above these limits received on or after close of business on May 15, 2026 will be rejected and refunded.

Key Points

  • Affected schemes: Franklin Asian Equity Fund and Franklin U.S. Opportunities Equity Active Fund of Funds
  • Lump sum purchases and Switch-in transactions capped at ₹5,00,000 per PAN per month (first holder/Guardian)
  • New SIP/XSIP and AMC STP-In registrations permitted up to ₹50,000 per PAN per month
  • Existing SIP/XSIP/AMC STP registrations already on BSE StAR MF Platform will continue to be processed
  • Redemptions, Switch-out, and STP-out transactions are unrestricted
  • Subscription orders above ₹5,00,000 triggered to RTA on or after close of business May 15, 2026 will be rejected and refunded

Regulatory Changes

Franklin AMC issued a Notice-cum-Addendum introducing investment limits on two overseas/international fund schemes. BSE has duly implemented these restrictions on the BSE StAR MF Platform in accordance with the AMC communication. The changes restrict the inflow of fresh capital into these schemes, likely due to overseas investment limits imposed by SEBI on international funds.

Compliance Requirements

  • BSE members and distributors must ensure client orders for the affected schemes comply with the ₹5,00,000 monthly PAN-level cap for lump sum/switch-in
  • New systematic registration orders must not exceed ₹50,000 per PAN per month
  • Members should inform investors that orders exceeding the cap will be rejected and refunded
  • Existing systematic registrations need no action and will continue processing

Important Dates

  • May 15, 2026 (EOD): Cutoff — subscription orders above ₹5,00,000 triggered to RTA on or after close of business on this date will be rejected
  • May 18, 2026: Effective date of subscription restrictions on BSE StAR MF Platform

Impact Assessment

This restriction primarily affects retail and HNI investors seeking to invest in Franklin India’s international equity schemes (Asian and U.S. markets). The cap aligns with SEBI’s industry-wide overseas investment limit compliance. Impact is moderate — redemptions and existing systematic plans are unaffected, limiting disruption to current investors. New investors or those seeking to increase exposure to these international schemes will face monthly investment caps. The refund mechanism for oversize orders ensures investor funds are protected but may cause processing delays.

Impact Justification

Operational restriction affecting specific Franklin India MF schemes on BSE StAR MF platform; impacts investors in international/overseas fund-of-funds with capped subscription limits but does not affect redemptions or existing SIPs.