The Securities and Exchange Board of India (SEBI) has permitted domestic mutual funds to invest in overseas mutual funds and unit trusts, contingent upon maintaining at least 25% of their investments in Indian securities. This development aims to enhance investment opportunities for local funds, although experts recommend exercising caution in response to this change. In a related move, the Reserve Bank of India (RBI) has introduced a new operational framework that allows for the reclassification of Foreign Portfolio Investments (FPI) to Foreign Direct Investments (FDI) when certain holding thresholds are met. This framework is designed to streamline investment classifications and promote foreign investment in India.