Description

NSE announces temporary suspension of fresh subscriptions, SIP, STP and switch-ins for three Invesco Mutual Fund overseas fund-of-fund schemes to prevent breach of overseas investment limits.

Summary

NSE has disabled fresh subscriptions through lumpsum purchases, switch-ins, and fresh SIP/STP registrations for three Invesco Mutual Fund overseas fund-of-fund schemes effective from close of business hours on January 2, 2026. This action is taken to comply with SEBI’s overseas investment limits and prevent potential breach of these limits at the fund level. Existing SIPs, redemptions, switch-outs, and SWPs remain operational.

Key Points

  • Three Invesco schemes suspended for fresh subscriptions: Invesco India - Invesco Global Equity Income Fund of Fund, Invesco India - Invesco Pan European Equity Fund of Fund, and Invesco India - Invesco Global Consumer Trends Fund of Fund
  • Suspension effective from close of business hours on January 2, 2026
  • Fresh lumpsum subscriptions, switch-ins, and new SIP/STP/IDCW Transfer Plan registrations are disabled
  • Existing SIP/STP/IDCW Transfer Plans registered as of January 2, 2026 will continue to be processed
  • No restrictions on redemptions, SWPs, switch-outs, and STP-outs
  • Suspension is temporary and will continue until further notice

Regulatory Changes

SEBI, through its letter dated June 17, 2022, permitted AMCs to make investments in overseas funds/securities up to the headroom available without breaching the overseas investment limits as of February 1, 2022 at the fund level. This temporary suspension is implemented to ensure compliance with these regulatory limits and avoid potential breach.

Compliance Requirements

  • NSE MF Invest Platform members must take note of the disabled schemes
  • No fresh lumpsum subscriptions to be accepted for the three designated Invesco schemes
  • No new SIP, STP, or IDCW Transfer Plan registrations to be processed where designated schemes are target schemes
  • Continue processing existing SIP/STP/IDCW Transfer Plan installments registered on or before January 2, 2026
  • Continue processing redemptions, SWPs, switch-outs, and switch between plans/options without restrictions

Important Dates

  • January 2, 2026: Effective date for suspension of fresh subscriptions (close of business hours)
  • Ongoing: Existing SIPs/STPs registered on or before January 2, 2026 continue to be processed
  • To be announced: Resume date for fresh subscriptions (will be communicated through separate notice)

Impact Assessment

The suspension has limited impact on existing investors as their ongoing SIPs and redemption rights remain unaffected. New investors seeking exposure to these three overseas fund-of-fund schemes will need to wait until the suspension is lifted. The measure is precautionary to ensure regulatory compliance and does not indicate any operational issues with the schemes. Investors can continue with redemptions and systematic withdrawals without any restrictions. The temporary nature of the suspension suggests it will be reviewed based on headroom availability under SEBI’s overseas investment limits.

Impact Justification

Affects investors in specific Invesco overseas fund-of-fund schemes but does not impact broader market operations. Existing SIPs continue and redemptions remain unrestricted.