India’s stock market regulator Securities and Exchange Board of India (Sebi) will soon come out with guidelines regulating hedge funds that wish to operate here. “We are looking to provide a broad-based, registered and regulated platform to these entities, depending on their individual track records,” said a senior official at Sebi who did not wish to be identified. Among the measures being considered is one that will allow single hedge funds (those that have a single strategy or a single investor, and, therefore, a higher degree of risk) to invest only 49% of their investment corpus in India. Hedge funds are aggressively managed portfolio investments that use strategies such as leveraging, and taking long (a bet that the underlying asset will appreciate), short (that the underlying asset will depreciate) and derivative positions in the markets in order to make high returns.   more »