Description

NSE suspends fresh lumpsum subscriptions, SIPs, STPs and switch-ins for three PGIM India international fund of funds schemes effective December 10, 2025 to comply with SEBI overseas investment limits.

Summary

National Stock Exchange of India has disabled fresh subscriptions for certain PGIM India Mutual Fund schemes on the NSE MF Invest Platform effective after the cut-off timing of December 10, 2025. This action is taken to comply with SEBI’s overall industry limits for overseas investments (US $7 billion) and overseas ETF limits (US $1 billion). 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.

Key Points

  • Fresh lumpsum subscriptions in the three designated PGIM schemes are suspended post December 10, 2025 cut-off
  • Fresh Systematic Investment Plan (SIP) and Systematic Transfer Plan (STP) registrations into these schemes are not accepted
  • Switch-in transactions to the designated schemes are suspended
  • Existing SIP/STP installments registered on or before December 10, 2025 will continue to be processed
  • Redemptions, Systematic Withdrawal Plans (SWP), and switch-out transactions remain operational without restrictions
  • The suspension is triggered by SEBI’s overseas investment limits approaching capacity

Regulatory Changes

This circular implements SEBI Master Circular no. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/90 dated June 27, 2024, clause 12.19, which specifies:

  • Overall industry limit for overseas investment: US $7 billion
  • Overseas Exchange Traded Fund (ETF) limit: US $1 billion

SEBI letter no. SEBI/HO/OW/IMD-II/DoF3/P/25095/2022 dated June 17, 2022 permits Mutual Funds to accept subscriptions and invest in overseas funds/securities only up to the headroom available without breaching overseas investment limits as of end of day February 1, 2022 at the Mutual Fund level.

Compliance Requirements

For NSE Members:

  • Disable fresh lumpsum subscriptions for the three designated PGIM schemes
  • Block fresh SIP and STP registrations into these schemes
  • Prevent switch-in transactions to these schemes
  • Continue processing existing SIP/STP installments registered on or before December 10, 2025
  • Maintain normal operations for redemptions, SWPs, and switch-out transactions

Affected Schemes:

  1. PGIM India Global Equity Opportunities Fund of Fund
  2. PGIM India Emerging Markets Equity Fund of Fund
  3. PGIM India Global Select Real Estate Securities Fund of Fund

Transactions Not Accepted (post December 10, 2025 cut-off):

  • Lumpsum subscriptions
  • Fresh SIP/STP registrations
  • Switch-ins to designated schemes
  • New IDCW transfer plans where designated schemes are target schemes

Transactions Continuing:

  • Existing SIP/STP installments (registered on/before December 10, 2025)
  • Redemptions
  • SWPs
  • Switch-out transactions
  • Intra-scheme switches (Regular to Direct and vice versa) where processed before cut-off

Important Dates

  • December 10, 2025: Cut-off timing - transactions received after this are not accepted for fresh subscriptions
  • December 11, 2025: Circular issuance date
  • Immediate Effect: Restrictions implemented with immediate effect from December 10, 2025 cut-off

Impact Assessment

Investor Impact:

  • New investors cannot make fresh investments in these three international fund of funds schemes
  • Existing investors cannot make additional lumpsum investments or set up new SIPs/STPs
  • Investors seeking international equity or global real estate exposure through these specific PGIM schemes must look for alternative investment options
  • Existing SIP investors can continue their scheduled investments

Market Impact:

  • Reflects the mutual fund industry approaching SEBI’s prescribed overseas investment limits
  • Indicates strong investor demand for international investment opportunities through Indian mutual funds
  • May lead to increased interest in alternative international investment schemes that have not yet reached capacity limits

Operational Impact:

  • NSE MF Invest Platform must implement technical controls to block specified transaction types
  • Distribution channels need to inform investors about the suspension
  • No impact on liquidity as redemptions and withdrawals continue normally

Support Contact:

Impact Justification

Complete suspension of fresh subscriptions in multiple mutual fund schemes affects investor ability to invest in international equity and real estate exposure through these funds due to regulatory overseas investment limits.