This restriction means that the mutual funds can no longer investment in foreign securities until either the investment value reduces below the threshold or the threshold is increased to a Higher limit.
So for now, the mutual funds can’t create or issue fresh units to the investors in relation to international investments.
However, this restriction doesn’t affect the existing investors in such international ETFs or MF, as they can still sell or redeem such units with other investors or with the MF.
You can refer to below thread for better clarity