The fund house informed about this to its unitholder through a notice-cum-addendum. The changes will be effective from February 26.
The fund house informed that the lumpsum subscription, switch-ins and fresh registration of SIP/STP or such other special products under its overseas funds are being suspended temporarily.
The overseas schemes are: Nippon India US Equity Opportunities Fund, Nippon India Japan Equity Fund, Nippon India Taiwan Equity Fund, and Nippon India ETF Hang Seng BeES.
Thh fund house informed that the aforesaid suspension is temporary in nature and shall be reviewed based on any increase in available headroom without breaching overseas investment limits mentioned above or further enhancement of limit by regulators in this regard.
The notice-cum-addendum stated that lumpsum subscription or switch-in applications received post the respective applicable cut-off time of the applicable scheme as of February 23, 2024 shall not be accepted and processed. Further applications for creation of units of Exchange Traded Funds (ETF) of above-mentioned ETF received directly by the fund house from an investor including large investors shall not be accepted.The fund house further clarified that the said suspension is not applicable for intra scheme switches between plan(s) and option(s) in the same scheme and existing registered SIP / STP or such other special product transactions.
Nippon India Mutual Fund informed the investors that pursuant to SEBI email dated January 28, 2022 read with AMFI communication dated January 30, 2022, in order to avoid breach of industry-wide overseas investment limits as allowed by RBI, lumpsum subscription, switchins and fresh registration of SIP/STP or such other special product were temporarily suspended for certain schemes of Nippon India Mutual Fund which invest in overseas securities with effect from February 2, 2022.
Further SEBI through its letter no. SEBI/HO/OW/IMD-ll/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 EOD of February 1, 2022 at mutual fund level.
Accordingly, subscription was resumed in the overseas funds of Nippon India Mutual Fund with effect from June 22, 2022 in accordance with Notice cum Addendum dated June 20, 2022.
However, post the resumption of the subscription in certain schemes investing in overseas securities, there was substantial utilization of available overseas investment limits. Therefore, with a view to avoid breach of the overseas investment limit as of EOD of February 1, 2022, the lumpsum subscription, switch-ins and fresh registration of SIP/STP or such other special products in the aforesaid schemes was suspended again with effect from June 29, 2022.
Further, considering SEBI letter dated June 17, 2022 as stated above, subscription was re- resumed in the overseas funds of Nippon India Mutual Fund with effect from, August 04, 2022.
The notice-cum-addendum stated that all other features, terms and conditions pertaining to the above-mentioned schemes shall remain unchanged. This addendum forms an integral part of the scheme information document (“SID”) & key information memorandum (“KIM”) of the above-mentioned scheme(s) of the fund house. All the other provisions, features, terms and conditions of the SIDs, KIMs except as specifically modified herein above shall remain unchanged.
