ICICI Prudential Mutual Fund has announced a temporary suspension of new subscriptions for several of its international mutual fund schemes, effective August 13. The suspension applies to all modes of fresh investments, including lump-sum payments, switch-ins, Systematic Investment Plans (SIPs), and Systematic Transfer Plans (STPs), for five specific funds: ICICI Prudential US Bluechip Equity Fund, ICICI Prudential Global Stable Equity Fund, ICICI Prudential Global Advantage Fund, ICICI Prudential Nasdaq 100 Index Fund, and ICICI Prudential Strategic Metal and Energy Equity Fund of Funds.
The suspension does not affect ongoing systematic transactions, such as existing SIPs and STPs, which will continue to be processed as per the scheme terms. This move is a result of regulatory limits on overseas investments set by the Securities and Exchange Board of India (SEBI) and the Association of Mutual Funds in India (AMFI), including the Reserve Bank of India’s $7 billion cap on international mutual fund flows and an additional $1 billion limit for ETF-based international investments.
It’s worth noting that this suspension comes after the mutual fund had recently reopened subscriptions in three of its international schemes – US Bluechip Equity Fund, Nasdaq 100 Index Fund, and Strategic Metal and Energy FoF – effective July 17. ICICI Prudential Mutual Fund will reassess the situation and may resume new subscriptions when regulatory headroom reopens or guidelines change. In the meantime, the firm will continue to facilitate normal processing of redemptions and ongoing systematic investments.
The temporary suspension is likely a precautionary measure to ensure compliance with regulatory limits and to avoid any potential issues with international mutual fund flows. The mutual fund will continue to monitor the situation and may lift the suspension when the regulatory environment changes or when the limits on overseas investments are increased. Investors who had planned to invest in these schemes may need to explore alternative options or wait until the suspension is lifted.