Sunday, May 13, 2007

Hedge funds to debut in India soon

The RBI monetary policy for 2007-2008 has given a fillip to the alternative investment industry in India.

In a move to usher the capital and current account convertibility of the rupee the RBI has increased the present limit for individuals for any permitted current or capital account transaction from $50,000 to $100,000 per financial year.The current account convertibility was established with the acceptance of the obligations under Article VIII of the IMF’s Articles of Agreement in August 1994.

Driven by the need to increase their assets under management Hedge funds have reduced their minimum investment limits from $1mn to 200,000$ and even 100,000$ overseas and to tap the retail markets launched mutual funds that invest in them.This move by the Hedge fund community over the years coupled with the government's incentive gives a strong case for Hedge fund investments in India.

The SEBI has laid down the guidelines for the direct registration of hedge funds.What is to be seen is that how these funds interpret this move by the RBI.

Read the Hindu article
$100,000 limit puts hedge funds within reach of Indian investors

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