Source: Business Times
The Security and Stock Exchange Board of India (Sebi) has allowed 4 hedge funds to register as foreign institutional investors (FII) category, albeit in a cautious manner.
The four foreign funds, viz, Milan, Italy-based Aletti Gestielle Societa, Toronto-based DGAM Emerging Markets Equity Fund, Karma Capital Management and Blackrock Advisors, have been granted FII registration by the regulator in recent weeks, triggering speculation that Sebi is slowly allowing hedge funds an entry into the domestic markets on a case-to-case basis, sources said.
The move, sources said, was aimed at making less attractive the practice adopted by Hedge Funds to invest in the Indian markets indirectly through the participatory notes (PN) route.
Several India-focused hedge funds already have exposure in the domestic equity markets (through the PN route), out of their offices based in Singapore as India has a double tax avoidance agreement with the city-state.
