Hedge funds won't get a free run on Dalal St.

(From The Economic Times)

Byline: Puja Mehra

: Dalal St will not be a free way for Hedge Funds (HFs) any more. Alarmed by growing HF inflows, the Securities and Exchange Board of India (Sebi) has worked out an eligibility criterion for HFs operating in India.

The proposed guidelines may bar risky HFs from buying on local bourses. HFs acting as fronts for individuals are perceived as risky. The regulator is comfortable about HFs investing on behalf of corporates and institutional investors like pension funds. It views such investments as safe. These HFs, however, will be subject to regulation and disclosure norms.

A Sebi concept paper on …