MUMBAI –
India plans to selectively allow hedge funds to invest in the markets, a regulatory body said Wednesday.
Hedge funds are known to be already investing in India. “They should come here and invest directly. Let them come from the front door. Let them not hide,†M. Damodaran, chairman of the Securities and Exchange Board of India, told reporters here Wednesday.
Damodaran said about 30% of foreign institutional investment in the market is estimated to come from hedge funds who invest through offshore participatory notes, derivatives issued by investment banks against underlying Indian securities.
