PGIM India Mutual Fund Suspends New Inflows in Select International Schemes

PGIM India Mutual Fund Temporarily Restricts Fresh Subscriptions

PGIM India Asset Management has introduced a temporary restriction on fresh subscriptions in three of its international mutual fund schemes due to compliance with overseas investment limits. The restriction, effective at March 9, 2026, applies to 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 manager has announced that lumpsum subscriptions and switch-ins into these schemes will not be processed after the specified cut-off time. Fresh registrations for Systematic Investment Plans (SIPs) and Systematic Transfer Plans (STPs) into the schemes will also be rejected. However, instalments of existing SIPs and STPs registered on or before March 9, 2026 will continue to be processed as usual.

This move is in line with SEBI's guidelines on overseas investments outlined in its master circular issued in June 2024. The regulatory framework includes an overall overseas investment limit of $7 billion and a separate limit of $1 billion for overseas exchange-traded funds (ETFs). Mutual funds are allowed to invest in overseas securities only within the headroom available as of February 1, 2022, at the mutual fund level. PGIM India stated that the temporary restrictions are intended to prevent any potential breach of these limits.

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Other transactions, including redemptions, switch-outs, and systematic withdrawal plans where the designated schemes are the source scheme, will remain unaffected by the temporary restrictions.