India asks fund managers to stop investing in overseas ETFs

India's markets regulator has asked the country's asset managers to stop inflows into schemes that invest in overseas exchange traded funds (ETFs) from April 1, according to a document seen by Reuters.

The Association of Mutual Funds in India (AMFI) sent out an email to asset managers late on Wednesday informing then of the directive, according to Reuters.

The email did not give a reason. India imposes a limit of $1 billion on mutual funds to invest in overseas ETFs. Public disclosures show that Indian mutual funds are close to breaching that limit.

The Securities and Exchange Board of India (SEBI) and AMFI did not immediately respond to Reuters requests for comment.