Description

NSE announces temporary suspension of fresh subscriptions, SIP, STP and switch-ins for PGIM India's Global Equity Opportunities FoF, Emerging Markets Equity FoF, and Global Select Real Estate Securities FoF effective after November 17, 2025 cut-off to avoid breaching SEBI overseas investment limits.

Summary

NSE has disabled fresh subscriptions for three PGIM India Mutual Fund schemes on the NSE MF Invest Platform with immediate effect post the cut-off timing of November 17, 2025. The affected schemes are 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 prevent breach of SEBI-specified overseas investment limits of USD 7 billion overall and USD 1 billion for overseas ETFs, in accordance with SEBI Master Circular dated June 27, 2024 and SEBI letter dated June 17, 2022.

Key Points

  • Three PGIM India fund-of-fund schemes suspended for fresh subscriptions effective after November 17, 2025 cut-off timing
  • Transactions prohibited: Lumpsum subscriptions, Switch-ins, Fresh SIP registrations, Fresh STP registrations into designated schemes
  • Existing SIPs and STPs registered as of November 17, 2025 will continue to operate normally
  • Redemptions, Systematic Withdrawal Plans (SWP), Switch-out and STP-out transactions remain unrestricted
  • Intra-scheme switches (Regular to Direct and vice versa) are not impacted
  • IDCW transfer plans existing before cut-off will not trigger new switch-out transactions post cut-off
  • Restriction applies only to transactions received post cut-off timing of November 17, 2025

Regulatory Changes

No new regulatory changes introduced. The suspension is implemented in compliance with existing SEBI regulations:

  • SEBI Master Circular No. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/90 dated June 27, 2024 (Clause 12.19) specifying overall industry limit for overseas investment as USD 7 billion and overseas ETF limit as USD 1 billion
  • SEBI letter No. SEBI/HO/OW/IMD-II/DoF3/P/25095/2022 dated June 17, 2022 permitting Mutual Funds to accept subscriptions and invest in overseas funds/securities up to headroom available without breaching overseas investment limits as of end-of-day February 1, 2022 at Mutual Fund level

Compliance Requirements

For Investors:

  • Cannot place fresh lumpsum subscriptions or switch-ins to the three designated PGIM schemes post November 17, 2025 cut-off
  • Cannot register new SIP or STP into these schemes post cut-off
  • Must use alternative investment options if seeking fresh exposure to global equity or real estate securities
  • Existing SIP/STP installments will continue to be processed

For NSE MF Invest Platform:

  • Disable fresh subscription functionality for the three designated PGIM schemes
  • Continue processing existing systematic plans, redemptions, and switch-out transactions
  • Implement cut-off timing controls to reject prohibited transactions

For PGIM India Mutual Fund:

  • Monitor overseas investment headroom to stay within SEBI limits
  • Issue notice cum addendum to Scheme Information Documents (SIDs) and Key Information Memorandums (KIMs)
  • Communicate restrictions to distributors and investors

Important Dates

  • November 17, 2025 (Cut-off timing): Last date/time for accepting fresh subscriptions, switch-ins, new SIP/STP registrations in the three designated PGIM schemes
  • November 18, 2025: NSE circular issued to members
  • February 1, 2022: Reference date for overseas investment headroom calculation as per SEBI letter dated June 17, 2022

Impact Assessment

Investor Impact:

  • High impact on investors seeking fresh exposure to global equity markets and international real estate through PGIM fund-of-funds
  • Existing investors can continue systematic investments through pre-registered SIPs/STPs
  • Redemption and exit options remain fully available, providing liquidity
  • Investors may need to explore alternative overseas investment options through other AMCs or direct international funds

Market Impact:

  • Reflects industry-wide constraint on overseas investments by Indian mutual funds approaching SEBI-mandated limits
  • May indicate strong investor appetite for international diversification pushing against regulatory ceilings
  • Other AMCs with international/fund-of-fund schemes may face similar restrictions if industry limits are approached
  • Temporary nature suggests AMC expects headroom to become available through redemptions or limit revisions

Operational Impact:

  • NSE MF Invest Platform must implement technical controls to block specific transaction types while allowing others
  • Distribution channels need to communicate restrictions to investors and redirect fresh investments
  • Fund accounting systems must track and enforce overseas investment limits in real-time
  • No impact on existing systematic plan processing infrastructure

Impact Justification

High ranking due to immediate suspension of fresh subscriptions in three PGIM schemes affecting investor access, driven by SEBI overseas investment limit constraints of USD 7 billion industry-wide and USD 1 billion for ETFs.