The government has announced that Mutual Funds (MFs) will now be acknowledging the subscriptions from overseas investors for debt schemes in the infrastructure sector. The new window will consider the suggestions of the corporate chiefs which were made during the talks with the finance minister.

After the equity scheme announced in the budget, this new MF window has also been added. After the $10 billion cap on MFs raising funds from global investors investing in equities, the mutual fund debt window will be including the investment ceiling of $3 billion.

With the limit of $10 billion, IMF will openly accept the subscriptions from foreign investors for their equity schemes. This will ease up the investment area and will also expand the foreign investor base of the domestic equity markets.

According to guidelines notified by the Reserve Bank of India and the Securities and Exchange Board of India (Sebi), till now only foreign institutional investors (FIIs) and overseas Indians were permitted for purchasing the domestic mutual funds. But now, foreign investors have also been allowed to invest an additional $3 billion in mutual fund debt schemes. Sebi will be monitoring the investment ceiling on everyday basis.