Curbs on international funds – what you need to know

About a week ago, we had written on two of our recommended funds – Motilal Oswal Nasdaq 100 FoF and Motilal Oswal S&P 500 Index Fund barring all fresh lump-sum investments. Over the weekend funds from the Franklin and Nippon India AMCs also appear to have disallowed any new investments. 

At play in these curbs on international funds are the RBI’s limits on overseas investments and SEBI’s rules. Here, we’ll list out the concerns you would be having over these limits, what they mean, and what you should do. 

Please note that this is a developing situation. It will change over the course of the coming weeks. We’ll do our best to keep this post updated based on developments but it may come with some lag, depending on whether we have clarity as well 😊 

Curbs on international funds

At this time, given the confusion surrounding these moves, our aim is simply to clarify the nature of these recent developments and ease any worries you may have. We have responded the best we can with the limited communication available from both AMCs and AMFI or SEBI in this regard.

Please note that the information given here is subject to change. AMCs are expected to issue addendums in the coming week based on developments. We will be updating this article based on information flow. Individual addendums will be added for major AMCs at the end of this article.

Q1. What is all this about investment limits for funds investing overseas?

Foreign investments are regulated by the Reserve Bank of India. Think about the Liberalised Remittance Scheme, that applies to spends you may make on overseas travel or stocks you buy directly in foreign markets. The cap on these, in a financial year, is $250,000 for individuals such as you and me.

Obviously, since currency flows directly impact exchange rates, the RBI keeps a rein on the same – whether it is domestic investments overseas or the reverse, borrowing overseas, FPI flows, direct investments and so on.

And therefore, the RBI specifies the extent to which the mutual fund industry as a whole can invest in overseas instruments. The industry-wide limit today stands at US $7 billion for investing in foreign securities. These securities could be ADRs/GDRs, stocks, debt instruments including government securities, derivatives, MF units and REITs. In addition to this $7 billion limit, there is another cap of $1 billion on investments made in overseas ETFs.

These limits apply to the MF industry itself. 

Separately, SEBI itself specifies the maximum a particular AMC can invest overseas; presumably, this could be towards bringing some equitability among the AMCs. Accordingly, each AMC can invest up to $1 billion in overseas securities and $300 million in overseas ETFs. Note that the limits apply to investments being made in overseas securities – it does not apply to the AUM itself. Remember that a fund’s AUM is a combination of fresh inflows and investments made plus the price appreciation in the portfolio. We are talking of the former alone here. 

These limits – both industry-wide and AMC-specific have been revised over the years. The table below shows how caps have gradually moved up. All amounts are in USD.

It is the above investment limit that is close to being breached. As we understand, it is only the $7 billion limit on overseas securities that is the primary concern at this time, and not the ETF limit. Therefore, funds that directly buy overseas stocks, bonds, or MFs are those that appear to be hitting the pause button on fresh inflows. More on that in later Qs.

Q2. Why are concerns over these limits cropping up now?

The mutual fund industry as a whole itself has really come into its own, featuring decisively in the retail investor's investments, only after 2015. More specifically, diversifying into overseas markets gathered pace only over the past couple of years as awareness grew – and as the Nasdaq 100’s skyrocketing returns caught investor attention.

For example, the AUM of fund-of-funds investing overseas stood at Rs 24,427 crore as of December 2021. That’s quite the leap from the Rs 9,088 in December 2020 and even more so from the mere Rs 2,636 crore in December 2019.

And that’s not including funds that invest directly in overseas stocks, and funds that add a dose of international stocks in their portfolios. A quick use of our MF Screener shows about 35 funds (open-ended only) with overseas exposure of more than 5% of their portfolios – that’s about 1 in every 10 equity funds. As we noted in our article on NFO investing last month, 2021 saw a spurt in NFOs of funds with an overseas investment mandate.

Therefore, though the current limits of $7 billion in overseas securities and $1 billion in ETFs have been in place for years, the rapid swell of investor interest over recent times is pushing at these caps.

Q3. What are funds doing in the face of these limitations?

Motilal Oswal AMC appears to be the first to have taken any steps, disallowing new lumpsums and switch-ins in its key overseas funds and avoiding creation of new units in its ETFs. Others, such as Franklin Templeton AMC and Nippon AMC have also reportedly paused investments. ICICI Prudential AMC advanced the closure of its Strategic Metal and Equity FoF. 

However, the exact rules of these bans are not clear as there are no addendums that AMCs have published as yet

According to reports, these will begin flowing in this week. We’ll update this section based on what unfolds over the course of this week. As far as we can grasp, AMCs may end up doing some or all of these:

  • Banning all new lump-sum investments and switch-ins, but allowing registering of new SIPs and continuation of SIPs already running.
  • Banning all lumpsums, switch ins and new SIP registrations but allowing SIPs already set up to continue. An extreme variation of this would be to cancel current SIPs, but we have not as yet seen notifications to this effect.

However, going by a recent media tweet with an AMFI internal note, it appears that AMFI has stated that AMCs shall not make any incremental investments in overseas funds or securities beyond what is existing on February 1, 2022. The note states that this is for AMCs with mandate to invest in overseas securities without the optionality to invest in Indian securities (essentially applicable only to funds with mandate to primarily invest internationally and not domestic funds that have limited exposure to overseas markets). 

The above, in our interpretation could mean stoppage of any kind of inflows -  lumpsum, fresh SIP, exiting SIP or STP. However, clarity on this is awaited by way of individual AMC addendums.

Bear in mind that the above moves and concern here is only with funds that invest in overseas securities (see Q1 for what qualifies) and not overseas ETFs. As far as funds investing in overseas ETFs go, since the limit is not near concerning levels, there appear to be no investment restrictions so far.
Again, this is a developing scenario and clarity on what funds are planning to do will emerge over the next few days or weeks. Please also note – very importantly – that this affects only fresh investments in the fund. It does not impact any redemptions or investments already made.

Q4. What is the way forward for these funds? Will these funds shut down?

To put it very plainly – the industry-wide investment limit needs to be revised upward. RBI and SEBI, along with the MF industry need to work out the caps that could be put in place that would allow them to continue investing as per their mandate and without disrupting investor interests. From what we gather and based on media reports, there are consultations ongoing that could see an upward revision in the cap. Funds are unlikely to completely shut down, unless there’s absolutely no change in the investment limits; in which case, funds may look to merge with others instead of an outright closure.

Q5. Will performance of these funds be affected?

Well – to some extent, the ban on fresh inflows could impact performance. There are different aspects at play here. One, the nature of the fund. Two, the ability of the fund to juggle exposure within its existing portfolio. 

For funds that invest in MF units, the performance impact may be minimised as the underlying international fund has no restriction on accepting inflows and will continue to manage their portfolio as before. The domestic FoF will only have to meet any redemption requests. 

For funds that invest directly in overseas stocks – such as ICICI Pru US Bluechip or Nippon India US Equity Opportunities or Nippon India Japan Equity - it can have some bearing on performance. With no fresh inflows, funds may find it harder to pick up new opportunities especially in the ongoing correction or shore up any performance dips through inflows. Performance will depend on how well the fund is able to use its current corpus to capture market movements.

Q6. What about funds that invest only part of their portfolio overseas like Parag Parikh Flexi Cap?

This depends on each fund. Parag Parikh Flexi Cap has banned fresh lumpsums and SIP registrations, but existing SIPs will continue. As far as other funds that invest overseas go, what each will do needs to be seen.

If they do not restrict inflows, they can simply continue to invest in domestic stocks based on their strategies. For most such funds, the international portion does not dominate the portfolio. For Parag Parikh, for instance, the overseas allocation is within 30%, as is the case for DSP Value. Axis Growth Opportunities and Axis Special Situations come in at about 25% of the portfolio. ICICI Pru FMCG and Kotak Pioneer hold at about 17%. Therefore, these funds have enough portfolio room to invest fresh inflows in domestic markets. While the overseas exposure has given a return impetus, these funds are certainly not entirely without investment options. 

Besides, the overseas portion of the portfolio is not disappearing altogether – whether for Parag Parikh Flexi Cap or any other fund. It is just that these funds may not be able to increase holdings there; they will continue to hold investments made. At worst, the restrictions may limit the fund’s ability to average costs lower in these market corrections. As explained above, a fund can still juggle around with overseas exposure that is already part of the portfolio.

Also remember that all indications are that the investment limit will be revised in due course. Any impact, therefore, may be temporary.

Update on 11.03.2022: Parag Parikh Flexi Cap has withdrawn the suspension of fresh investments in the fund. Therefore, the fund will now open up for all investments - but note that it will not be able to make incremental investments in overseas stocks yet as the investment curbs remain in place.

Q7. What happens to my investments in these funds?

Your investments in funds that have restricted inflows will not be affected. The only impact on you is if you want to make additional investments in these funds, since that may not be allowed. You can continue to hold these funds. Nothing changes for you.

Q8. Should I reduce investments in overseas funds?

If it is only this news about limits and investment restrictions that is your concern – NO, do not rush into redeeming and reducing exposure or stopping any ongoing SIPs. 

As you now know, this is not a fund-specific event and does not mean your fund’s performance is poor. This is an industry-wide development, triggered due to RBI rules in its foreign exchange management. 

Diversifying overseas is a sound investment strategy. An industry development of an operational (and most likely temporary) nature does not detract from diversification benefits. It does not mean that investing in US markets, or developed markets or any other market is going to get you poor returns from now on. Your original investment argument in investing in the overseas fund of your choice continues to hold. If you already hold such investments, remain invested. At the cost of sounding repetitive, do not be spooked into exits simply because of a ban on fresh inflows.

Q9. What should I do if I want to invest overseas now?

There are a few options available. For one, you could pick funds that as of yet have not barred inflows – provided, of course, that these funds (and the overseas markets they invest in) are investment-worthy.

Two, you could go for funds that invest in overseas ETFs since the current restrictions do not extend to ETF investments. Again, ensure that the ETF meets your portfolio requirements and is a good one to diversify into.

Three, you could invest in domestic ETFs that have international indices as the underlying. There are two risks here - one, a sudden uptick in demand for these ETFs may not be matched by a supply. AMCs manage trading volumes by creating units to meet demand if needed. With restrictions on investing overseas, an AMC may be unable to accept fresh money directly into the ETF to create fresh units. Therefore, there is a risk that the ETF’s market price may move beyond the ETF’s underlying NAV. Read about the impact of NAV and market price deviation in this article. Two, it needs to be seen how the ETF will maintain its portfolio construct and reflect the underlying index weights correctly if it is unable to deploy fresh money to adjust weights.

Q10. What about international NFOs that have just collected money?

If the fund’s mandate was to invest in ETFs, it will not be affected and it can deploy the amounts collected as designed. If its mandate is to invest in stocks or overseas funds, then options are not exactly clear at this time – it could, for example, hold cash and deploy when the ban lifts. It could change its mandate to allow it to invest in ETFs temporarily and tide over the ban.

Please note that we will not be taking queries on the status of individual mutual funds other than those we have recommended. We will try our best to update the addendums of AMCs below, as and when it comes to our notice. You may refer to updates from individual schemes in the below list.

Curbs on international funds: fund-wise list

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26 thoughts on “Curbs on international funds – what you need to know”

  1. Any impact to SBI Focused Equity Fund; They also have decent exposure to global stocks; havent seen any info from SBI Fund so far though.

    1. As explained, for funds with domestic-global exposure, they will mostly be able to manage fine as they will still be able to invest as per their strategy. It shouldn’t be a concerning impact for SBI Focused. We’ll know if the fund has any restrictions only after it issues an addendum towards it. – thanks, Bhavana

  2. Thanks Bhavana on writing on this much needed subject. Given the fact that nasdaq and S&P 500 index has good correction, do you think we can do a possible lumpsum in these funds before the cut off of 2nd Feb 2022? For instance, parag parikh allows us to do a lumpsum for next two days? could you please some throw light here?

    1. If you want to do a lumpsum in the window you have, yes, you can. But given the risks in making lumpsum investments, it’s best not to put hefty amounts in the fund, just because it is closing off fresh subscriptions. There are other options too, to invest. If you want exposure to the Nasdaq 100, you can always consider the Kotak Nasdaq 100 since it invests in the iShares Nasdaq 100 ETF and to this extent will not yet be impacted by the cap – meaning that you can make phased investments based on dips. Also note that the closure may be temporary and can be lifted once the RBI, SEBI and the MF industry work out a solution. – thanks, Bhavana

  3. Say if a person is invested in S&P 500 Index Fund and if the composition of the index were to change during the next review, the fund would not be able to make proportionate change, right? This might mean index returns are not matched, right?

    Also for funds that invest a portion in US Equities, if they were to find one of their investment as no longer attractive, they can only redeem and not invest that amount back in another US Equity right? If so, this would gradually erode their international holdings.

    1. It’s more operational in nature, so it’s bit hard to know what exactly will happen – funds selling stocks overseas don’t necessarily have to bring the amounts back in and then take the money back out into those markets. So it depends on what exactly happens during trades and portfolio management. As we mentioned in the final point, tracking error may see an impact because the fund/ETF may find it harder to exactly reflect the underlying index. – regards, Bhavana

    1. Please check the addendum for full details on what is allowed and what is not. We have only provided the main and most widely-applicable details. – thanks, Bhavana

  4. I have been reading all over the internet trying to seek clarity on the same and couldn’t find any articles that has summed up neatly like you guys have done. Thanks for providing the clarity.

    So as things stand, DSP can go invest in the 2 ETFs while they have to wait for the remaining 3 MFs until the limit is increased.

    1. Thanks! Yes, as of now, DSP will first invest in the ETFs and then deploy into the other funds when permitted. – regards, Bhavana

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Scope of the Research Service: The Research Services will be limited to providing independent research recommendation and shall not be involved in any advisory or portfolio allocation services. The Research Services are not meant to be tailor-made or customized solutions that specifically apply to each client based on his/her risk profile.

The RA never guarantees the returns on the recommendation provided. Investor shall take note that investment/trading in stocks/Index or other securities is always subject to market risk. Past performance is never a guarantee of same future results. The RA shall not be responsible for any loss to the Investors.

This service is not directed for access or use by anyone in a country, especially the USA, Canada or the European Union countries, where such use or access is unlawful or which may subject PrimeInvestor Financial Research Pvt Ltd or its affiliates to any registration or licensing requirement.

The Research Service, including recommendations, research reports, updates, and other information will be accessible through the RA’s website https://primeinvestor.in only. Such recommendations and updates will not be provided over phone calls.

Fees: Our current fee structure, the term and duration of our subscription for our Research Service, can be viewed on our website: https://primeinvestor.in/prime-pricing. Eligibility for any discounts is ascertained at the time the client subscribes. Any such discount and its tenure shall be at the discretion of the RA.

Subscription and access to content services fall under the purview of Goods and Services Tax (GST) as per the current indirect taxation policy, Government of India. Unless otherwise indicated, prices stated on our website are exclusive of applicable GST, any applicable value added tax (VAT) or other sales taxes. We are a business-to-consumer (B2C) service provider and we do not commit to provide any input tax credit on GST charged on subscription to our Research Service.

We may change the Subscription Fees and charges then in effect, or add new fees or charges which will take effect at the end of the client’s subscription period, by giving notice in advance and an opportunity to cancel renewal of the subscription.

Subscription Access & Renewal: Subscription to the Website commences immediately on the realisation of payment of the Subscription Fees. Subscriptions are set to be renewed automatically at the end of the subscription period.

Unless the client notifies us before the end of his/her subscription period, or the client cancels the auto-renewal mandate within the period specified by law, that the client does not wish to renew his/her subscription, the client’s subscription will renew for the period defined by the client’s subscription plan. We will charge the subscription using the same payment method that you previously used.

Although the client may notify to us his/her intention to his/her subscription, such notice will only take effect at the end of his/her then current subscription period, and he/she will not receive a refund other than as set out under Clause 8 in these Terms.

The client may notify us of his/her wish to cancel his/her subscription by sending an email to [email protected]. The client must provide at least 5 business days advance notice for this to be implemented.

Refunds: There can be no cancellation and refund of subscription fee paid once the subscription is active, other than as stated in Clause 8 of these Terms. If the client is entitled to a refund as specified under Clause 8 of these Terms, the RA will credit that refund to the card or other payment method used by the client to submit payment, unless it has expired - in which case the RA will contact the client to proceed with the refund. If we do issue a refund or credit due to circumstances outside the obligations specified under Clause 8, we are under no obligation to issue the same or a similar refund in the future.

General disclaimers: The recommendations made herein in the Research Services are expression of views and/or opinions and should not be deemed or construed to be advice for the purpose of purchase or sale of any security, nor a solicitation or offering on any investment/ trading opportunity on behalf of the company, AMC, insurance company, or issuer of security referred to herein.

The content and research reports generated by the RA does not constitute or is not intended to constitute an offer to buy or sell, or a solicitation to an offer to buy or sell financial products, units or securities.

The information/ opinion/ views mentioned in research reports or by the RA are not meant to serve as a professional guide to the client or recipients of this Report. The research report, recommendation, or any other content published by the RA do not assure or guarantee any minimum or fixed returns to the client or recipients of the reports/ recommendations/ content.

Use of this information is at the client’s own risk. The client must make his/ her own investment decisions based on his/her specific investment objective and financial position and using such independent advisors as he/she believes necessary. The services rendered by the RA are on a best-effort basis. All information in the content or research report of the RA is provided on an as is basis. Information is believed to be reliable but the RA does not warrant its completeness or accuracy and expressly disclaim all warranties and conditions of any kind, whether express or implied.

While due care has been taken to ensure that the disclosures, information, and opinions given are fair and reasonable, PrimeInvestor Financial Research Pvt Ltd and/or none of its officers, directors, partners, employees, agents, subsidiaries, affiliates or business associates shall be liable for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including lost profits arising in any way whatsoever from the information/ opinions/ views contained in the research report and recommendations that form part of the Research Service, and/or mails, social media or notifications issued by PrimeInvestor Financial Research Pvt Ltd or any other agency appointed/authorised by PrimeInvestor Financial Research Pvt Ltd. Returns and performance figures mentioned in the research report represent past performance and should not be constituted to be future returns or guaranteed returns.

Any agreements, transactions or other arrangements made between the client and any third party named on (or linked to from) the Website are at your own responsibility and entered into at your own risk. Any information that you receive via the Website, whether or not it is classified as “real time”, may have stopped being current by the time it reaches you. Market price information may be rounded up/down and therefore may not be entirely accurate.

The purpose of these disclosures is to provide essential information about the Research Services in a manner to assist and enable the prospective client/client in making an informed decision for engaging in Research Services before onboarding.

History, present business and background: PrimeInvestor Financial Research Private Limited is registered with SEBI as Research Analyst with registration no. INH200008653. The Research Analyst got its registration on August 19, 2021 and is engaged in offering research and recommendation services.

Disciplinary history: There are no pending material litigations or legal proceedings against the Research Analyst. As on date, no penalties / directions have been issued by SEBI under the SEBI Act or Regulations made thereunder against the Research Analyst relating to Research Analyst services.

Details of the RA's associates: No associates.

Usage of Website Content: This Website is controlled and operated by the RA. All material, including research reports, recommendations, portfolios, ratings, lists of financial products, illustrations, statements, opinions, views, photographs, products, images, artwork, designs, text, graphics, logos, button icons, images, audio and video clips and software (collectively, “Content”) are protected by copyrights, trademarks and other intellectual property rights that are owned and controlled by the RA or by other parties that have licensed their material to us.

Except where otherwise agreed in writing with the RA, material on the Website is solely for the client’s personal, non-commercial use. Except as provided below, the client must not copy, reproduce, republish, upload, post, transmit or distribute such material in any way, including by e-mail or other electronic means and whether directly or indirectly and the client must not assist any other person to do so.

Without the prior written consent of the RA, modification of the materials, use of the materials on any other web site or networked computer environment or use of the materials for any purpose other than personal, non-commercial use is a violation of the copyrights, trademarks and other proprietary rights, and is prohibited. Any use for which the client receives any remuneration, whether in money or otherwise, is a commercial use for the purposes of these Terms.

The client may occasionally distribute a copy of a research report, or a portion of the same, from the Website in non-electronic form to a few individuals without charge, provided the client includes all copyright and other proprietary rights notices in the same form in which the notices appear, original source attribution, and the phrase “Used with permission from PrimeInvestor Financial Research Pvt. Ltd.”

While the client may occasionally download and store research reports or information from the Website for his/her personal use, he/she may not otherwise provide others with access to the same. The foregoing does not apply to any sharing functionality we provide through the Website that expressly allows the client to share Content or links to Content with others. In addition, the client may not use Content he/she has downloaded for personal use to develop or operate an automated trading system or for data or text mining.

The client agrees not to rearrange or modify the Content available through the Website. The client agrees not to display, post, frame, or scrape the Content for use on another website, app, blog, product or service, except as otherwise expressly permitted by these Terms. You agree not to create any derivative work based on or containing the research products and Content. The framing or scraping of or in-line linking to the Services or any Content contained thereon and/or the use of webcrawler, spidering or other automated means to access, copy, index, process and/or store any Content made available on or through the Services other than as expressly authorized by us is prohibited.

The client further agrees to abide by exclusionary protocols (e.g., Robots.txt, Automated Content Access Protocol (ACAP), etc.) that may be used in connection with the Research Services. The client may not access parts of the Research Services to which he/she is not authorized, or attempt to circumvent any restrictions imposed on your use or access of the Services.

As a general rule, the client may not use the Content, including without limitation, any Content made available through one of our RSS Feeds, in any commercial product or service, without our express written consent.

The client may not create apps, extensions, or other products and services that use our Content without our permission. The client may not aggregate or otherwise use our Content in a manner that could reasonably serve as a substitute for a subscription to the Website.

The client may not access or view the Services with the use of any scripts, extensions, or programs that alter the way the Services are displayed, rendered, or transmitted to you without our written consent.

The client agrees not to use the Services for any unlawful purpose. We reserve the right to terminate or restrict the client's access to the Website if, in our opinion, the client's use of the Services may violate any laws, regulations or rulings, infringe upon another person's rights or violate these Terms.

Prohibited content: The Website includes comments sections, blogs and other interactive features that allow interaction among clients and between clients and the RA. We call the information posted by or contributed by users “Contributed Content.” In the course of availing of the Research Services or uploading any post or comment on the Website, the client shall not post any Contributed Content that (i) contains nude, semi-nude, sexually suggestive photos, (ii) tends or is likely to abuse, harass, threaten, impersonate or intimidate other users of the Website and/or Research Services, (iii) is lascivious or appeals to the prurient interest or if its effect is such as to tend to deprave and corrupt persons who are likely to use or have access to the Website and/or Services, or (iv) otherwise violates, is prohibited or restricted by applicable law, rule or regulation, is offensive or illegal or violates the rights of, harms or threatens the safety of other users of the Website and/or Services (collectively “Prohibited Content”).

We reserve the right to cease to provide the client with the Research Services or access to the Website, or terminate your subscription, with immediate effect and without notice and liability, for violating these Terms, applicable law, rules or regulations and reserves the right to remove Prohibited Content which is in violation of these Terms, or is otherwise abusive, illegal or disruptive. The determination of whether any content constitutes Prohibited Content, violates these Terms, or is otherwise abusive illegal or disruptive, is subject to the sole determination of the Firm.

Changes to Research Services: We are constantly endeavouring to improve the quality of Research Services provided to our clients. Due to this, the form and nature of the Research Services provided may change from time to time without any prior notice to the client. We reserve the right to introduce and initiate new features, functionalities, components to the Website and/or Research Services and/or change, alter, modify, or discontinue existing ones without any prior notice to the client.

Warranty and liability disclaimer: The Website, Research Services, and all the materials and services, included on or otherwise made available to the client through this Website is provided by the RA on an “as is” and “as available” basis without any representation or warranties, express or implied except otherwise specified in writing. Without prejudice to the foregoing paragraph, the RA does not warrant that:

  • This Website and/or Research Services will be constantly available, or available at all;
  • The information on this Website or provided through the Research Services is complete, true, accurate or not misleading; or
  • The quality of any products, services, information, or other material that you obtain through the Website or Services will meet your expectations.

The RA, to the fullest extent permitted by law, disclaims all warranties, whether express or implied, including the warranty of merchantability, fitness for particular purpose and non-infringement. The RA makes no warranties about the accuracy, reliability, completeness, or timeliness of the Website, Research Services, Content, Contributed Content, Services, software, text, graphics and links.

The RA does not warrant that this Website, Research Services, information, content, materials, or any other material included on or otherwise made available to you through this Website, their servers, or electronic communication sent by the RA are free of viruses or other harmful components.

Nothing on this Website constitutes, or is meant to constitute, advice of any kind.

Indemnification: The client:

  1. Represents, warrants and covenants that no materials of any kind provided by him/her will:
    1. Violate, plagiarise, or infringe upon the rights of any third party, including copyright, trademark, privacy or other personal or proprietary rights; or
    2. Contain libellous, Prohibited Content or other unlawful material;
  2. Hereby agree to indemnify, defend and hold harmless the RA and all of the RA’s officers, directors, owners, agents, customers/clients, information providers, affiliates, licensors and licensees (collectively, the “Indemnified Parties”) from and against any and all liability and costs, including, without limitation, reasonable advocate’s fees, incurred by the Indemnified Parties in connection with any claim arising out of any breach by the client of these Terms or the foregoing representations, warranties and covenants. The client shall cooperate as fully as reasonably required in the defence of any such claim. The RA reserves the right, at its own expense, to assume the exclusive defence and control of any matter subject to indemnification by the client.

Applicable law: This Website, including the Content and Contributed Content and information contained herein, and the provision of Research Services shall be governed by the Securities and Exchange Board of India, laws of the Republic of India and the courts of Chennai, India which shall retain exclusive jurisdiction to entertain any proceedings in relation to any disputes arising out of the same. As such, the laws of India shall govern any transaction completed using this Website.

Information gathered and tracked: Information submitted or collected on the Website or pursuant to the use of the Services is stored in a database. Specifically, we store the username, name, e-mail address, contact number, as submitted or collected on our Website or through the provision of the Research Services. We may use such information to send out occasional promotional materials, including alerts on new Services available, or other promotional and marketing material relating to our clients and customers.

In accordance with the Information Technology Act 2000, the name and the details of the Grievance Officer at PrimeInvestor is provided below:

Mr. Srikanth Meenakshi
PrimeInvestor Financial Research Pvt. Ltd., Registered office: 659, 4th Avenue, D-Sector, Anna Nagar Western Extension, Chennai 600 101.
Email: [email protected]

11. Mandatory notice:

Clients shall be requested to go through Do’s and Don’ts while dealing with RA as specified in SEBI master circular no. SEBI/HO/MIRSD-POD-1/P/CIR/2024/49 dated May 21, 2024 or as may be specified by SEBI from time to time.

12. Optional Centralised Fee Collection Mechanism:

SEBI has operationalized a centralized fee collection mechanism for IA and RA. Under this mechanism, clients shall pay fees to IAs/RAs through a designated platform/portal administered by a recognized Administration and Supervision body. This is an optional mechanism for the registered entities. At this time, PrimeInvestor has opted out of this fee collection mechanism. Therefore, all subscription payments for the Research Services will be through the modes as specified in Clause 5 of these Terms.

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