How active are the hedge funds in Indian market?
Hedge funds are not allowed to participate directly in India and we don’t propose to allow them to participate. There is a provision that they can take the participatory note route. We will examine how they are present there. Even JPC has said that we must verify (this). So long it does not disturb the integrity of the market, it is fine. Before I allow anybody to enter into the market I must ensure that risk management measures are effectively in place. We will examine the data and then we will see if there are any areas of concern and then we will take appropriate action. Aren’t the Indian markets dependent on FIIs? There are domestic financial institutions such as LIC and other insurance companies also. Mutual funds have a lot of money. You can say that FII participation is much higher than domestic participation. But as long as there is no discomfort in their participation why should we bother? The corpus of the mutual fund industry today is much larger than what it was when UTI wa
