Explain the enhancement of overseas investment limits permitted for Mutual Funds vide SEBI's circular dated November 05, 2020.

SEBI vide its circular dated 5th November, 2020 enhanced the investment limits per Mutual fund as under: Mutual Funds can make overseas investments subject to a maximum of US $ 600 million per Mutual fund within overall Industry limit of US $ 7 billion. Mutual Funds can make investments in overseas Exchange Traded Fund subject to a maximum of US $ 200 million per Mutual Fund, within the overall industry limit of US $ 1 billion. The allocation methodology of the aforementioned limits shall be as follows: In case of above overseas investments, US $ 50 million would be reserved for each Mutual Fund individually, within the overall industry limit of US $ 7 billion. A mutual fund launching a New Fund Offer (NFO) and intending to invest overseas will be required to specify the amount it will invest outside India and use the limit specified within six months. For existing schemes, SEBI specified a headroom of 20% of the average assets under management (AUM) in the previous three months in overseas securities, for investment in foreign securities subject to maximum limits as specified.