Sebi’s March 24 circular directed Indian asset managers to stop accepting fresh inflows into schemes that invest in foreign shares or ETFs since the industry-wide limit of $1 billion has almost been breached.
The government on Monday issued two gazette notifications in which Overseas Direct Investment and Overseas Portfolio Investment have been demarcated. In the earlier regulations, Overseas Portfolio Investment was not clearly defined. The other terms such as Control, disinvestment, step down subsidiary and financial services activity, among others, have also been defined.
The government on Tuesday said that an Indian corporate entity can make overseas investments beyond the prescribed limit in strategic sectors like energy and natural resources after obtaining necessary permissions.