Description

NSE has disabled fresh subscriptions, SIPs and STPs for three Invesco Mutual Fund overseas fund of fund schemes due to overseas investment limit constraints set by SEBI.

Summary

The National Stock Exchange of India has temporarily suspended fresh subscriptions, SIPs, STPs and lumpsum investments in three Invesco Mutual Fund overseas fund of fund schemes effective from close of business hours on October 9, 2025. This action is taken to comply with SEBI’s overseas investment limits set in June 2022, which restrict AMCs to make overseas investments only up to the headroom available without breaching the limits as of February 1, 2022 at the Fund level. Existing SIP/STP installments and all redemption/switch-out transactions will continue to be processed.

Key Points

  • Three Invesco Mutual Fund schemes affected: Invesco Global Equity Income Fund of Fund, Invesco Pan European Equity Fund of Fund, and Invesco Global Consumer Trends Fund of Fund
  • Fresh subscriptions, SIPs, STPs and lumpsum investments disabled with immediate effect from October 9, 2025
  • Existing SIP/STP/IDCW Transfer Plan installments registered as on October 9, 2025 will continue to be processed
  • No restrictions on redemptions, Systematic Withdrawal Plans (SWP), switch-out and STP out transactions
  • Suspension is temporary and will continue until SEBI/RBI enhances overseas investment limits or headroom increases
  • Action taken to avoid potential breach of overseas investment limits set by SEBI

Regulatory Changes

This circular implements compliance with SEBI’s directive dated June 17, 2022, which permitted AMCs to make investments in overseas funds/securities only up to the headroom available without breaching the overseas investment limits as of February 1, 2022 at the Fund level. The temporary suspension is a preventive measure to ensure continued adherence to these regulatory limits.

Compliance Requirements

  • NSE members must note the suspension of fresh subscriptions in the three designated Invesco schemes
  • Investment platforms must disable fresh lumpsum purchases, switch-ins to these schemes, and new SIP/STP/IDCW Transfer Plan registrations where these schemes are target schemes
  • Continue processing existing SIP/STP/IDCW Transfer Plan installments registered on or before October 9, 2025
  • Continue processing all redemptions, switch-outs, SWPs and switches between plans/options without restrictions
  • All other terms and conditions of the Scheme Information Documents (SIDs) and Key Information Memorandums (KIMs) remain unchanged

Important Dates

  • October 9, 2025: Effective date for temporary suspension of fresh subscriptions (close of business hours)
  • October 10, 2025: Circular issue date
  • Duration: Suspension will continue until SEBI/RBI enhances overseas investment limits or headroom increases without breaching limits

Impact Assessment

Investor Impact: Investors seeking to make new investments in the three designated Invesco overseas fund of fund schemes will be unable to do so through lumpsum, SIP, or STP routes. However, existing investors can continue their ongoing SIP/STP installments and have full access to redemption and switch-out facilities, ensuring liquidity is not impacted.

Market Impact: Limited to investors specifically interested in these three Invesco overseas fund of fund schemes. Does not affect the broader mutual fund market or other Invesco schemes. The suspension is a precautionary regulatory compliance measure rather than a reflection of scheme performance or fund health.

Operational Impact: Investment platforms and distributors need to update their systems to block fresh subscriptions while maintaining processing capabilities for existing commitments and exit transactions. The temporary nature of the suspension provides flexibility for resumption when regulatory headroom becomes available.

Impact Justification

Affects investors in specific Invesco overseas fund of fund schemes but does not impact broader market operations. Existing SIPs continue and redemptions are unaffected. Temporary measure pending limit enhancement.