DSP Mutual Fund temporarily restricts subscription in its international funds

DSP Mutual Fund has announced temporary restrictions on subscription to the units of the seven international schemes. Any lump sum subscription, switch-in, new SIP/STP/ IDCW Transfer Plan registration requests received in these schemes post the cut-off timing on October 1 will not be accepted. SIP/STP installments for existing SIP/STP registration in designated schemes as on October 1 will continue till further notice.

The fund house informed about this to its unit holders through a notice cum addendum.

The temporary restriction is on below mentioned schemes:


DSP Global Innovation Fund of Fund

DSP Global Allocation Fund of Fund

DSP Global Clean Energy Fund of Fund

DSP World Agriculture Fund

DSP US Flexible Equity Fund of Fund

DSP World Gold Fund of Fund

DSP World Mining Fund

Any incremental investment to be made by designated employees as per clause 6.10 of SEBI Master Circular shall be made in units of those schemes whose risk value as per the risk-o-meter is equivalent or higher than that of these schemes.

This move came as a precautionary measure, in order to avoid the breach of DSP Mutual Fund level limit as on February 01, 2022.

SEBI had specified an overall industry limit for overseas investment as US $7 billion and overseas Exchange Traded Fund (ETF(s) limit as US $1 billion. SEBI vide email dated January 28, 2022 and AMFI vide email dated January 30, 2022, directed AMCs to temporarily restrict the subscription in the schemes which intend to invest in overseas securities w.e.f. February 2, 2022, in order to avoid breach of industry-wide overseas investments limits as permitted by RBI.

In this regard, SEBI vide its letter no. SEBI/HO/OW/IMD-II/DOF3/P/25095 /2022 dated June 17, 2022 had advised AMFI that Mutual Fund schemes may resume subscriptions and make investments in overseas funds/securities upto the headroom available without breaching the overseas investment limits as of end of day of February 01, 2022 at Mutual Fund level.

Further, SEBI vide email dated March 19, 2024 and AMFI vide email dated March 20, 2024, directed AMCs to temporarily restrict the subscription in the schemes which intends to invest in overseas Exchange Traded Funds (ETFs) w.e.f. April 01, 2024 to avoid breach of industry-wide limits for investment in overseas ETFs as allowed by Reserve Bank of India (RBI) and as defined in clause 12.19 of SEBI Master Circular.

The above-mentioned change shall override the conflicting provisions, if any, and shall form an integral part of the SID and KIM of applicable schemes of the Fund, as amended from time to time. All the other provisions of the SID and KIM of applicable schemes of the Fund, except as specifically modified herein above, remain unchanged.