Mumbai, Jun 3 (IANS): Mutual funds can now make overseas investments of up to $1 billion within the overall industry limit of $7 billion.

The Securities and Exchange Board of India (SEBI) on Thursday raised the investment limit to $1 billion per mutual fund.

In a circular, the capital market regulator said that the decision has been taken post representations from the mutual fund industry.

The SEBI also decided that "mutual funds can make investments in overseas Exchange Traded Fund (ETF) subject to a maximum of $300 million per mutual fund, within the overall industry limit of $1 billion".

In respect of investment limits to be disclosed in the scheme documents at the time of NFO, and the investment limits on ongoing schemes, such limits would henceforth be soft limits for the purpose of reporting only by mutual funds on monthly basis in the format prescribed through SEBI circular dated November 5, 2020, the circular said.

The circular has come into force with immediate effect.