[The Auditors Institute Ltd]

Hello Mihir

Thanks for the question.

An SMSF can certainly invest in shares in foreign companies.  There is no prohibition in the SIS Act or SIS Regulations in relation to such an investment.

The challenges from an audit perspective might be:

• Seeing in what name the shares are held.  If they are not held in the name of the trustee of the fund for some technical reason, is there a declaration of trust in place over the shares.
• Confirming valuation and existence
• Language translation issues (not a concern for listed Indian investments)
• Foreign currency conversion calculation correctness

Happy to hear the thoughts of other auditors on this matter.

Best regards

The Auditors Institute