The Reserve Bank of India has released the findings of the 2022-23 survey focusing on the Foreign Liabilities and Assets of Mutual Fund (MF) Companies. The comprehensive study encompassed 43 Indian MF companies and their associated Asset Management Companies (AMCs), which held or acquired foreign assets and liabilities during the fiscal year 2022-23 and/or in previous years. The findings of the survey are as follows:
I. Mutual Fund Companies (MF):
Foreign liabilities of MF companies increased by 1.6% in US dollar terms at market value during 2022-23 to US$ 18.7 billion in March 2023.
Overseas assets of MF companies declined by 13.5% to US$ 5.6 billion in March 2023, due to lower holdings of equity securities.
As a result, the net foreign liabilities of MF companies increased to US$ 13.1 billion in March 2023 from US$ 11.9 billion a year ago.
The United Arab Emirates (UAE), the United States of America (USA), the United Kingdom (UK) and Singapore together accounted for 45 per cent of the total MF units held by non-residents, both in terms of face value as well as at market value.
More than 81% of the overseas equity investment of the MF companies were concentrated in the USA and Luxembourg.
II. Asset Management Companies (AMCs):
Due to lower direct investment liabilities, foreign liabilities of AMCs declined to US$ 3.4 billion in March 2023 from US$ 5.7 billion a year ago; their overseas assets remained below US$ 0.1 billion, which were largely held in Guernsey, Singapore and Mauritius.
Residents of Japan and the UK together held over two-third of FDI among Indian AMCs in March 2023.
