Insights

Temporary Restrictions on DSP Mutual Fund Schemes

October 3, 2024 . FundsIndia Desk

Bulletin

Note for Investors

As per directives from SEBI (email dated March 19, 2024) and AMFI (email dated March 20, 2024), Asset Management Companies (AMCs) are required to temporarily restrict subscriptions in schemes investing in overseas Exchange Traded Funds (ETFs), effective April 01, 2024. This is to ensure that industry-wide limits set by the Reserve Bank of India (RBI) are not breached, as per SEBI’s Master Circular clause 12.19.

To avoid breaching the DSP Mutual Fund-level limits, temporary restrictions on subscription to the following schemes will apply:

Important Note: Purchase/Switch-in transactions reported after 3 pm on October 1, 2024 (after the cut-off time) will NOT be accepted.Click the link for the list of affected schemes: Affected Schemes

Particulars	Effective Date
Temporary restrictions on subscription to units of certain schemes of DSP Mutual Fund	October 01, 2024

Impact Summary:

Sr. No.	Particulars	Impact
1	Lumpsum – Subscription / Switch-in	Not accepted effective from Oct 01, 2024 (post cut-off time)
2	Fresh SIP/STP-in registration (including systematic transfer plan/Transfer of IDCW Plan) into specified schemes	Not accepted effective from Oct 01, 2024 (post cut-off time)
3	Existing SIP/STP-in (including Transfer of IDCW Plan) as on October 01, 2024 (before cut-off time)	No impact. Existing instalments will be processed.
4	Intra-scheme switches between Plan(s) and Option(s) in the same scheme	No impact. Switches within the Scheme will be processed.
5	Redemption, Switch-out, Registration of new Systematic Withdrawal Plan (SWP), new Systematic Transfer Plan (STP-out), and instalments of existing SWP/STP-out	No impact. Will be allowed.