Which Indian fund houses restrict U.S. and Canada residents
As far as we found, no Indian law bars U.S. or Canadian residents from Indian funds. The limits are each fund house's own. This is a dated snapshot, read 5 November 2026, and a way to check your own.
Prepared by Prem Tax and Accounting Corp. Last checked against official sources on November 5, 2026.
Nothing we found in Indian law bars a U.S. or Canadian resident from owning Indian funds. The limits sit in each fund house's scheme papers, and they change. This is a snapshot: on 5 November 2026 we checked 37 fund houses; 35 could be read. Our Policy-Page Postmark Note shows how to check yours. See also KYC and buying.
- The foreign exchange rules, SEBI's 2026 regulations and its master circular say nothing about U.S. or Canadian residents.
- Fund houses cite U.S. and Canadian securities-law registration; none we read blames FATCA.
Six examples, read 5 November 2026
| Fund house | Document | What it says |
|---|---|---|
| Bandhan | SAI, 30 June 2026 | U.S. person may buy when in India with a declaration, or top up through its portal; Canada resident may not buy, switch or start SIPs |
| DSP | SAI, 30 October 2026 | Both barred, except U.S. NRIs or PIOs in India on paper |
| Franklin Templeton | SAI, 30 June 2026 | Not for U.S. persons or Canada residents |
| HSBC | Value Fund SID, 28 November 2025 | Both barred; SIPs end if a holding stays |
| ICICI Prudential | SAI, 30 June 2026 | U.S. NRIs or PIOs in India on paper; Canada, no fresh purchases, switches or SIPs |
| Nippon India | SAI, 14 October 2026 | Accepts both, subject to applicable law and its own terms |
Alphabetical, not a ranking. Both means U.S. persons and Canada residents. Check each fund house's own page.
Source: each fund house's own papers
How to check a fund house
- Open its own site and newest SAI (statement of additional information); page one has the date.
- In the SAI and the scheme's SID (scheme information document), read "who cannot invest"; search "U.S. person" and "Canada".
- Check its notices and application form, then write to it and keep the reply.
Mistakes people make
- Trusting a broker or blog list over the fund house's papers.
- Reading a website pop-up ("I am a U.S. person") as permission or refusal.
- Assuming a move freezes a folio; purchases often stop, and the fund house may redeem.
Our checklist
The Policy-Page Postmark Note:
- Fund house, scheme and folio number.
- Document title, printed date and the date you read it.
- The exact sentence on U.S. persons and Canada residents, your status that day and any reply.
Common questions
Does Indian law ban U.S. or Canadian residents?
None that we found; the limits are fund house policy in scheme papers.
Why do fund houses restrict them?
They say their schemes are not registered under U.S. securities law or in Canadian provinces. FATCA is the reporting rule, not a reason any document gave.
I hold units and I am moving. What now?
Many fund houses stop purchases and SIPs yet allow redemption. See [heirs and moving](/indian-mutual-funds/india-rules/inheritance-and-changing-residence/), our [U.S. PFIC guide](/indian-mutual-funds/countries/usa-pfic-and-form-8621/) and our [Indian CPA page](/indian-cpa/).
Official sources
- SEBI: Mutual Funds Regulations, 2026, consolidated to 10 October 2026
- SEBI: Master Circular for Mutual Funds, 20 March 2026
- RBI: Foreign Exchange Management (Non-debt Instruments) Rules, 2019, consolidated text
- SEBI investor education: Investments by NRIs in the Indian securities market, information as on 29 September 2022
- AMFI: Average assets under management by fund house
- SEBI: Review of KYC process for individual PROI clients, 4 November 2026
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