Skip to content


FM hints at opening up markets to hedge funds

The finance ministry appears open to the idea of allowing hedge funds to operate directly in the securities market. An indication to this effect was given by finance minister P Chidambaram on Wednesday on the sidelines of the 32nd annual conference of the International Organisation of Securities Commissions (IOSCO). “If hedge funds wish to come to India, and if Sebi is comfortable in allowing them, then I am sure Sebi can put in place the appropriate regulations under which they can operate,” he said.

Hedge funds are believed to have total global corpus of more than $1 trillion and are active across asset classes.

Regulators in many countries are grappling with the dilemma of whether to allow hedge funds directly in their markets as they often operate under the guise of offshore derivatives instruments like participatory notes (PNs). In India, around 30% of funds invested by foreign institutional investors come through PNs and other routes. FIIs have invested over $52 billion in the Indian market.

M Damodaran, chairman, Sebi, also made a reference to hedge funds in his address at the IOSCO conference, saying: “Those who cannot directly access the Indian market have sought to do so by investing in ODIs issued by registered FIIs. There is also continuing demand to open up Indian markets to hedge funds.”

Source : Financial Express

Posted in Main Page.


No Responses (yet)

Stay in touch with the conversation, subscribe to the RSS feed for comments on this post.



Some HTML is OK

or, reply to this post via trackback.



Disclaimer: The www.hedgefundsindia.com website solely provides information about HEDGE FUNDS INDIA space. No data or statement herein is or should be construed to be a recommendation for the purchase, retention, or sale of the securities referred to herein and we accept no liability for the consequences of your reliance on this data and information. The value of investments and the income derived from them may fall as well as rise. The information in this website is based on data gathered from publicly available websites and other information mediums. We have not independently verified such information , do not represent it as accurate, true or complete, make no warranty, express or implied regarding it and shall not be liable for any losses, damages, costs or expenses relating to its adequacy, accuracy, truth, completeness or use. Investments in hedge funds, private equity, venture capital and other private investment funds are speculative and involve a high degree of risk. You could lose all or a substantial amount of your investment. This website does not list, and does not purport to list, the risk factors associated with an investment in any of the funds listed on this site. We do not represent any hedge funds, private equity or investment/financial advisors nor give any investment recommendations.