Foreigners allowed to invest upto $10Bn in Indian mutual funds

In an attempt to manage the volatile capital flows, the finance ministry today allowed foreign individuals to invest up to $10 billion in domestic mutual funds. The Securities and Exchange Board of India (Sebi) will notify the rules by August 1. The move was announced in the Budget. At present, besides resident Indians, only foreign institutional investors (FIIs), sub-accounts registered with Sebi and non-resident Indians can invest in mutual funds in India. The move will give mutual funds access to more foreign money. The fund industry, however, reacted with caution and said it would wait for the final guidelines

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