Mirae Asset Mutual Fund tells investors to be careful of buying overseas ETFs on exchange

In a announcement released connected Monday, the money location told investors that successful bid to comply with Sebi restrictions connected the bounds connected caller inflows successful overseas ETFs, money location had temporarily suspended subscriptions received straight from an capitalist successful Mirae Asset’s overseas schemes which are Mirae Asset NYSE FANG+ ETF, Mirae Asset S&P 500 Top 50 ETF and Mirae Asset Hang Seng Tech ETF.

It is worthy noting that the communal money houses are not meant to accept fresh wealth for ETFs listed connected overseas exchanges from April 1 onwards, arsenic per the Sebi’s bid issued successful March.

Creation of caller units

The money location aboriginal explained that successful bid to comply with the regulatory limit, the instauration of units of overseas ETFs by marketplace makers is limited.

As a effect of this, determination whitethorn beryllium a imaginable interaction connected the liquidity and trading terms of these ETFs connected the exchanges wherever they are inactive bought and sold.

This is due to the fact that the trading terms of the overseas ETFs connected the speech whitethorn beryllium antithetic from its indicative intraday worth (I-NAV). And arsenic a result, ETFs whitethorn commercialized astatine either premium oregon discount.

So, the money location has advised investors to instrumentality precaution portion buying the ETFs connected the speech and to enactment 'limit order' portion buying and selling the overseas ETF safter looking to the I-NAV published connected the website astatine this link: https://www.miraeassetmf.co.in/transact-in-etf

Further, the money location told investors that the bounds connected overseas investments affects the instauration of units of overseas ETFs, but not the redemption of units.

The money location tried to allay the fears by making it wide that the marketplace makers volition proceed to supply liquidity by buying units from the investors astir I-NAV.

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Published: 23 Apr 2024, 03:40 PM IST