Mutual Funds’ foreign liabilities up in FY16

Reserve Bank of India (RBI) has released data related to foreign liabilities and assets of the Mutual Fund companies. The data has been collected from the annual survey of India’s Foreign Liabilities and Assets (FLA) attached to the Mutual Fund Companies (MFs) and Asset Management Companies (AMCs) covering 44 companies.

Foreign liabilities of MFs has increased by 3.9 per cent to Rs 58170 crore as of FY16. Other foreign liabilities arising out of unpaid income or dividends to non-residents, sale proceeds, pending repatriation, etc., have marginally declined, but have remained around Rs 50 crore in March 2016. However, Mutual Funds’ foreign assets have decreased by 5.45 per cent to Rs 3850 crore in FY16, where equity securities have grabbed a share of Rs 3830 crore. 

Considering country-wise foreign liabilities: United Arab Emirates, Singapore, UK, Mauritius and USA together have accounted for 47.7 per cent and 46.7 per cent share at face value and market value, respectively, in the total units held by non-residents in March 2016. Meanwhile, country-wise foreign assets: Luxembourg with share of 49 per cent continues to be the major overseas investment destination of MFs, followed by USA (39.5 per cent share).