Indian Hedge Funds

[ag_fx]

Hi All,

I am seeking some information on the front of Indian Hedge Funds. While it seems that there are a number of international hedge funds, we dont see any hedge funds in India.Am I right?
If yes, then what is the reason for it?People say that SEBI/RBI doesnt allow, but can anyone highlight as to why? Why is RBI/SEBI against Indian companies registering as hedge Funds.
If the guidelines are not clear, then why is the case that none of the Indian biggies like reliance have not set up hedge funds?
Can anyone provide a valid,practical answer to this?

 

[ag_fx]

The word hedge in an hedge fund is a misnomer. Most of these HFs use high leverage and do not employ any hedging as recent market events showed us. There is rarely any delta neutral hedging - and have greater beta due to their leverage.

This fad of hedge funds will pass. Only the best will survive.

25-30% of the hedge funds worldwide have blown-up this year. Only 10% of the hedge funds provide better than market returns after 3 years. The charge 2% management fee every year and 20% of the provides. All risk is transferred to the investors, and in times of crisis they even prevent redemptions.


Here is a promising Indian hedge fund :
http://michaelcovel.com/pdfs/indian.pdf


I do not know whether they have started operations in India.

Thanks a lot for your reply Adheer.

But I guess you didnt get my question. All what you have said is truely acceptable and I am pretty much aware of the same.

The link you provided is also of an India focussed HF. That is a fund, that operates from London and invests in Indian mkt by registering as FII.

My question was related to any HF of Indian origin? Set up in India and being operated in India.

Please enlighten me.