New Delhi, Aug 13 (FN Bureau) Foreign liabilities of Mutual Fund (MF) companies has increased by 36 percent during 2023-24 to USD 25.4 billion at market value in March 2024. These were largely held in the form of units issued to non-residents, says Reserve Bank of India (RBI). Today, the Reserve Bank released the results of the 2023-24 round of the survey of Foreign Liabilities and Assets of the MF Companies. The survey covered 45 Indian MF companies and their Asset Management Companies (AMCs), which held/acquired foreign assets/liabilities during 2023-24 and/or in the preceding years.
Overseas assets of MF companies increased to USD 8.8 billion in March end 2024, primarily on account of rise in equity securities. As a result, the net foreign liabilities of MF companies increased to USD 16.6 billion in March 2024 from USD 12.0 billion a year ago, the RBI said in a statement. The information on face value and market value of units held by non-residents, unit premium reserve, other foreign liabilities and assets of MF companies as at end of the financial year were collected under the survey. The external assets and liabilities of their AMCs were taken from the annual census on foreign liabilities and assets (FLA) of direct investment companies for the reference period. The United Arab Emirates (UAE), the United States of America (USA), the United Kingdom (UK) and Singapore were the top destinations for MF units held by non-residents, both in terms of face value as well as at market value, the RBI survey revealed.
The USA and Luxembourg accounted for nearly 85 percent of the overseas equity investment of the MF companies. The 45 MF companies include HDFC MF, Tata MF, Aditya Birla Sun Life MF, Axis MF, Kotak MF, LIC MF, UTI MF, ICICI Prudential Mutual Fund among others, the RBI added. Foreign liabilities of AMCs increased by USD 3.4 billion to USD 6.4 billion in March 2024 due to higher inward direct as well as portfolio investments during the year, the RBI said, adding their overseas assets stood low at USD 0.1 billion. Residents of Japan, Canada and the UK together accounted for 83.0 percent of FDI among Indian AMCs, RBI said.