Foreign Liabilities of MFs Rise to Rs 56,590 Cr in FY15: RBI

Mumbai: Foreign liabilities of mutual fund companies in India increased by Rs 15,540 crore during financial year 2014-15 to Rs 56,590 crore ($9 billion), according to a Reserve Bank of India survey.

The units issued to non-residents, which had major share within these liabilities, increased from Rs 40,920 crore in March 2014 to Rs 56,540 crore in March 2015 (at market value), according to the RBI 'Survey of Foreign Liabilities and Assets of Mutual Fund Companies: 2014-15'.

"Other foreign liabilities arising out of unpaid income/dividend to non-residents, sale proceeds pending repatriation, declined from Rs 1.3 billion in March, 2014 to Rs 0.5 billion in March, 2015," said the survey.

However, contrary to movements in foreign liabilities of MFs, their foreign assets declined from Rs 4,350 crore in March 2014 to Rs 4,070 crore in March 2015, the RBI said.

As a consequence, net liabilities of MFs increased by Rs 15,820 crore during 2014-15 to Rs 52,520 crore ($8.4 billion) in March, 2015.

"Equity securities, which remained the dominant component of foreign assets of MFs, declined marginally from Rs 42 billion to Rs 40.4 billion over this period," it said.

Country-wise, foreign liabilities from Mauritius, the UAE, the UK, the US and Singapore together accounted for 45.6 per cent share (at market value) and 41.9 per cent share (at face value), in the total units issued to non-residents during 2014-15.

In terms of foreign assets, Luxembourg (at 59.6 per cent) continued to be the major overseas investment destination of MFs, followed by USA (26.6 per cent), according to the findings of the survey.

Further, foreign liabilities of asset management companies (AMCs) associated with MFs increased by Rs 490 crore during 2014-15 to Rs 3,810 crore.

Foreign assets of AMCs increased marginally from Rs 180 crore during the year to Rs 220 crore.

"As a consequence, net liabilities increased from Rs 31.4 billion to Rs 35.9 billion over the period," the RBI said.

Country-wise, the UK accounted for the maximum share in foreign liabilities of MFs (26.4 per cent), followed by Mauritius (24.1 per cent) and Japan (12.1 per cent).

Guernsey and Singapore together accounted for nearly 54 per cent of total foreign assets of AMCs during 2014-15.