Date:01/03/2006 URL: http://www.thehindubusinessline.com/2006/03/01/stories/2006030100362200.htm

Back AMFI to seek clarifications on foreign investments

Our Bureau

Kolkata , Feb 28

The asset management industry intends to obtain the Government's clarification on whether the permission to cumulatively invest up to $1 billion in foreign ETFs (exchange-traded funds) would be in addition to the increased ceiling on investment in overseas securities.

Mr A.P. Kurian, Chairman, Association of Mutual Fund in India, said it will "look at the fine print to arrive at a conclusion". AMFI feels that fund houses with strong overseas antecedents would capitalise more on the new provision. "Investing in foreign securities is no child's play. Costs may be higher. Besides, taking a higher exposure to alien markets may require advisors who are familiar with such territories," Mr Kurian said.