New Delhi, Jan 30 (PTI) PPFAS Mutual Fund on Sunday announced that it will stop accepting inflows into PPFAS Flexicap Fund with effect from February 2.
The moves comes after the capital markets regulator Sebi directed mutual fund houses to stop taking fresh subscriptions in schemes investing in overseas stocks. The directive to stop subscription is mainly on account of the mutual fund industry crossing the mandated limit of $7 billion for overseas investments.
"In order to avoid breach of industry-wide overseas limit as allowed by RBI, Pursuant to Sebi's advice and Amfi clarification dated January 30,2022, schemes intending to invest in overseas securities need to stop accepting inflow from w.e.f February 2,2022. Accordingly, we will be stopping all forms of subscription in Parag Parikh Flexicap Fund," the fund house said in a tweet.
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Transactions in the fund received post the cut off timing of February 1 will not be accepted and processed. It, further, said that ongoing SIP/ STPs (systematic investment plan/systematic transfer plans) will not be affected. This suspension is" temporary in nature and will continue only till further enhancement of limit by Regulators in this regard". PPFAS Flexicap Fund invests up to 35 per cent of its corpus in foreign stocks, mainly stocks of US technology companies.
In June 2021, Sebi enhanced the overseas investment limit for a mutual fund house to $1 billion from the existing $600 million. The overall mutual fund industry limit was capped at $7 billion. "Mutual funds can make overseas investments subject to a maximum of $1 billion per mutual fund, within the overall industry limit of $7 billion," Sebi had said.
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