ICICI Prudential Mutual Fund Freezes Fresh Investments in Key Overseas Schemes

RBI’s foreign investment ceiling hits the limit, forcing temporary halt; existing investors remain secure

In a move that has caught the attention of global market investors, ICICI Prudential Mutual Fund has once again stopped accepting fresh investments in three of its overseas schemes from March 2, 2026. The decision comes after the industry-wide foreign investment limit set by the Reserve Bank of India (RBI) was fully exhausted.

The pause affects the ICICI Prudential US Bluechip Equity Fund, ICICI Prudential Nasdaq 100 Index Fund, and ICICI Prudential Strategic Metal and Energy Equity Fund of Funds. Investors will no longer be able to make lump sum investments, register new SIPs (Systematic Investment Plans), or initiate fresh transfers into these schemes.

However, there is relief for existing investors. Ongoing SIPs, systematic withdrawal plans (SWPs), redemptions, and switch-outs will continue as usual under existing rules.

The halt reflects a broader regulatory cap. The RBI allows the mutual fund industry to invest up to $7 billion in overseas securities, along with an additional $1 billion for foreign exchange-traded funds (ETFs). With this limit fully utilized, fund houses are required to pause new inflows.

Interestingly, the fund house had resumed fresh subscriptions in these schemes only in January 2026 after a prolonged break. The latest move highlights how tightly global investing is monitored in India’s banking and financial system. The fund house indicated it may reopen subscriptions if fresh limits become available or regulators revise the cap.