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Global hedge funds are boosting their presence in the long-shunned Indian market

Reuters · 1y ago

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Global hedge funds are increasingly setting up operations in India, attracted by the country's growing depth and liquidity as well as its emergence as an alternative to investing in China. Funds such as Dymon Asia Capital and Citadel Securities are entering the Indian market, citing factors such as the economic opportunity, a rich pool of talent, and a stable regulatory environment. The surge in trading volumes has also made it easier for hedge funds to hedge positions and pursue long-short equity strategies. Some funds, including Gao Capital, are establishing infrastructure to trade derivatives in India. However, challenges remain, including regulatory requirements, taxation, and liquidity.