Description

NSE has resumed subscriptions for Nippon India Japan Equity Fund and Nippon India Taiwan Equity Fund on NSE MF Invest Platform effective March 18, 2026, with a cap of INR 5 lakh per PAN per month.

Summary

NSE has revoked the suspension on subscriptions for two Nippon India Mutual Fund schemes — Nippon India Japan Equity Fund and Nippon India Taiwan Equity Fund — on the NSE MF Invest Platform, effective March 18, 2026. Subscriptions had been suspended since October 18, 2024 to avoid breaching industry-wide overseas investment limits as allowed by RBI. The resumption is subject to a monthly investment cap of INR 5 lakh per PAN.

Key Points

  • Subscriptions resumed for Nippon India Japan Equity Fund and Nippon India Taiwan Equity Fund from March 18, 2026
  • Covers fresh/additional subscriptions, switch-ins, and fresh registrations for SIP and STP
  • Total investment value per PAN (including existing investments and fresh inflows) capped at INR 5 lakh per PAN per month
  • Cumulative inflow across all modes of application shall not exceed INR 5 lakh per PAN per month
  • Total utilization of overseas investment limit remains capped at the amount as of EOD February 1, 2022, per SEBI directive

Regulatory Changes

  • Suspension imposed on October 18, 2024 (per Notice cum Addendum No. 54 dated October 16, 2024) is now revoked
  • Resumption is in line with SEBI’s letter no. SEBI/HO/OW/IMD-ll/DOF3/P/25095/2022 dated June 17, 2022, and AMFI advisory allowing MF schemes to resume subscriptions up to available headroom without breaching overseas investment limits as of EOD February 1, 2022

Compliance Requirements

  • NSE members on the MF Invest Platform must note the resumption and update their systems accordingly
  • Investments must be tracked to enforce the INR 5 lakh per PAN per month limit across all modes (lumpsum, switch-in, SIP, STP)
  • Overseas investment utilization must remain within the cap set as of EOD February 1, 2022

Important Dates

  • October 18, 2024: Subscription suspension took effect
  • March 18, 2026: Suspension revoked; subscriptions resumed on NSE MF Invest Platform

Impact Assessment

This circular primarily impacts investors interested in overseas equity exposure through Nippon India’s Japan and Taiwan-focused funds. The resumption provides fresh investment avenues that were unavailable for over a year. The INR 5 lakh per PAN per month cap limits large-scale inflows, mitigating risk of breaching SEBI’s overseas investment limits. NSE members operating on the MF Invest Platform need to update their subscription processing workflows to reflect the cap and resumed status.

Impact Justification

Resumption of previously suspended mutual fund subscriptions affects investors in Nippon India Japan and Taiwan Equity Funds, with a monthly investment cap imposed. Operationally significant for MF platform members and investors but limited to specific overseas fund schemes.