The move covers PGIM India Global Equity Opportunities Fund of Fund, PGIM India Emerging Markets Equity Fund of Fund and PGIM India Global Select Real Estate Securities Fund of Fund.
The asset management company (AMC) said the temporary suspension has been introduced to comply with the overseas investment limits prescribed by the Securities and Exchange Board of India (SEBI).
In June 2022, SEBI permitted mutual funds to resume investments in overseas securities and overseas funds only to the extent of the available headroom under the industry-wide overseas investment limits that existed as of February 1, 2022.
Since then, AMCs have periodically revised subscription rules for overseas schemes based on the available capacity.
PGIM India had earlier reopened and revised subscriptions in these schemes through multiple notices issued this year.
What changes for investors?
The latest restriction applies only to existing SIPs and STP instalments into the three designated schemes. Investors can continue to remain invested in the schemes, while redemption requests will continue to be processed as usual.
The suspension also does not affect switch-out transactions, Systematic Withdrawal Plans (SWPs), STPs from these schemes to other schemes, or switches between regular and direct plans and between Growth and IDCW options.
However, the fund house has not announced a timeline for resuming systematic investments. Any decision to restart subscriptions will depend on the availability of overseas investment headroom under the regulatory limits.
Why are overseas fund schemes subject to such restrictions?
Indian mutual funds investing overseas are required to operate within industry-wide investment limits prescribed by the regulator. When the available limit comes under pressure, fund houses may temporarily restrict subscriptions into overseas schemes to remain within the permitted ceiling.