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NEW DELHI: Asset management company Motilal Oswal Mutual Fund is scheduled to reopen two international schemes, Motilal Oswal Nasdaq Q50 ETF and Motilal Oswal Nasdaq 100 ETF, from Monday for subscription or creation of units.

To be sure, the two exchange-traded funds (ETFs) would be opened for authorised participants or market makers only from 19 September till further notice.

Liquidity in ETFs is created by market-makers called authorised participants, who are pre-appointed by AMCs to improve ETF liquidity.

In February, the Securities and Exchange Board of India (Sebi) had advised mutual funds investing in overseas securities to stop further investments in foreign stocks to avoid breach of industry-wide overseas limits.

The regulator has specified an overall industry limit of $7 billion for mutual funds to invest in overseas securities and funds and a separate limit of $1 billion for investing in overseas ETFs.

The Association of Mutual Funds in India (Amfi) in June had notified that mutual fund schemes may resume subscriptions and make investments in overseas funds /securities up to the headroom available without breaching the overseas investment limits as on 1 February 2022.

“Now, as we have headroom available with us, we are reopening direct creation in Motilal Oswal Nasdaq Q50 ETF and Motilal Oswal Nasdaq 100 ETF only for authorized participants / market makers," Motilal Oswal Mutual Fund said in a notice.

“We will monitor the regulatory limits and once the headroom limited is fulfilled, we will have to again restrict subscription" it added.

Investors should note that the fund house is continuing with the restriction on subscription, purchase or SIP for Motilal Oswal S&P 500 Index Fund, Motilal Oswal Nasdaq 100 ETF Fund of Fund and Motilal Oswal MSCI EAFE Top 100 Select Index Fund.

The fund house also highlighted that it is constantly engaging with the regulator to enhance the limits for overseas investments by mutual funds.

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