Can we start Hedge Funds in India? Are they legal?

Question

Can we start Hedge Funds in India? Are they legal?

Answer 1

Check out N., Nikhil Kumar ,Implications of Hedge Funds on the Indian Capital Market(August 20, 2007). Available at SSRN: http://ssrn.com/abstract=1016180

Kumar describes the increased acceptance (even by the regulator) of their presence, in spite of the fact that they are not permitted to 'invest' in Indian markets. His paper investigates the impact of Hedge Funds on emerging Indian financial markets as well as the possible implications of marketing of hedge funds in India.

Answer 2

Yes, it is legal to run a hedge fund in India.  Many us-based hedge funds are opening shop there. Here's an educational article on this topic: http://richard-wilson.blogspot.com/2008/...

Hope this helps.

- Richard

Richard Wilson

Hedge Fund Group (HFG)