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OVERSEAS INVESTMENT BY MUTUAL FUNDS

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Mutual Funds Companies are permitted to make investment in: 

(a) ADRs/GDRs issued by Indian or foreign companies.

(b) Equity shares of companies listed on overseas stock exchanges.

(c) Initial (IPO) and follow on public offerings (FPO) for listing at overseas stock exchanges.

(d) Foreign debt securities in the countries with fully convertible currencies.

(e) Money market instruments rated not below investment grade.

(f) Government securities where the countries are rated not below investment grade.

(g) Derivatives traded on recognized stock exchanges overseas only for hedging and portfolio balancing with underlying as securities.

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