The subscription will be temporarily suspended post close of business hours of January 5. The fund house has decided to suspend the fresh subscriptions in order to avoid breach of limit as of February 1, 2022.
The fund house informed the unitholders about this through addendum cum notice.
The fund house also informed the unitholders that applications for creation of units of Exchange Traded Funds (ETF) of Mirae Asset NYSE FANG+ ETF, Mirae Asset S&P 500 Top 50 ETF, and Mirae Asset Hang Seng TECH ETF received directly by the fund house from an investor including large investors shall not be accepted and processed post close of business hours of January 5.
The fund house also stated that the suspension is temporary in nature and will be reviewed depending upon the buffer created due to the redemptions into these schemes or till further enhancement of limit by SEBI/RBI in this regard.
The subscription through existing SIP/STP will continue till further notice. However, no fresh SIP / STP registrations will be allowed in the aforementioned schemes. Intra and inter scheme switch-ins will not be allowed in the aforementioned schemes. The fund house further informed that the suspension is not applicable to redemption/ switch-out applications/ systematic withdrawal plans (SWPs) received by the fund house for the aforesaid schemes. Further, units of exchange traded funds (ETFs) will continue to trade on the stock exchanges: NSE and BSE. Investors may trade (buy/sell) ETF units on the stock exchanges.
The fund house earlier suspended the lumpsum subscription, fresh systematic registrations, switch-ins in certain schemes of Mirae Asset Mutual Fund from February 02, 2022 pursuant to SEBI communication dated January 28, 2022.
According to SEBI’s letter no. SEBI/HO/OW/IMD-ll/DOF3/P/25095 /2022 dated June 17, 2022 and AMFI’s communication dated June 20, 2022 and June 21, 2022, fund houses were allowed to resume subscriptions in mutual fund schemes investing in overseas securities up to the headroom available without breaching the overseas investment limits as of February 1, 2022 at the mutual fund level.
Further, the subscription was resumed in the overseas funds of the fund house with effect from March 27, 2023 in accordance with Notice cum Addendum dated March 24, 2023.
Several mutual funds earlier stopped accepting money in overseas funds after they breached the overall limit of $7 billion mark set by regulators.
