SEBI's Big Shock

New Regulations on Overseas Mutual Fund Investments; What You Need to Know (and How Our AI Can Make it Easy)

Author

Anuj Srivastava
November 04, 2024

We're reaching out to inform you about an important SEBI circular (SEBI/HO/IMD/IMD-PoD-1/P/CIR/149) released yesterdat regarding investments in overseas mutual funds and unit trusts by Indian mutual funds. As your compliance partner, we want to ensure you're not just informed, but prepared to implement these changes effectively.

🔍 Key Highlights of the New Circular

  1. 25% Exposure Limit

    • Indian MF schemes can invest in overseas MF/UTs with exposure to Indian securities

    • Total exposure to Indian securities must not exceed 25% of their assets

  2. Critical Investment Criteria

    • Single pooled investment vehicle requirement

    • Pari-passu and pro-rata rights for all investors

    • Independent investment manager necessity

    • Mandatory quarterly portfolio disclosures

    • Prohibition on advisory agreements between Indian MFs and overseas MF/UTs

  3. Breach Management Protocol

    • 6-month observance period for monitoring rebalancing

    • Additional 6-month liquidation period if necessary

    • Restrictions on fresh investments during breach periods

How ComplianceOS AI Agent Can Help?

Our ComplianceOS platform is already equipped to help you navigate these new requirements:

  1. Instant Analysis & Action Items

    • Within 60 seconds of the circular's release, our AI agent has:

      • Generated detailed Excel reports

      • Created department-wise actionables

      • Updated the regulation library with version control

  2. Automated Compliance Tracking

    • Real-time monitoring of the 25% exposure limit

    • Automated alerts for breach scenarios

    • Countdown trackers for observance and liquidation periods

  3. Evidence Management

    • Automated evidence collection for quarterly portfolio reviews

    • Digital documentation of compliance steps

    • Audit-ready reports generation

đź’ˇImplementation Support

Our ComplianceOS platform can help you:

  • Track multiple overseas MF/UT investments simultaneously

  • Monitor exposure limits automatically

  • Generate compliance reports for audits

  • Maintain documentation for regulatory reviews

đź“Š The Impact

With ComplianceOS, you can expect:

  • 80% faster compliance implementation

  • 50% reduction in compliance costs

  • 100% elimination of late compliance issues

  • Comprehensive audit preparation within minutes

đź“ž Contact Us

For a detailed demonstration of how ComplianceOS can help you implement these new guidelines:

Stay compliant, stay ahead!