Indian hedge funds barred from investing in currency derivatives to check rupee volatility

ban-sign

The Securities and Exchange Board of India (Sebi) has asked domestic hedge funds to sign an undertaking they will not invest in foreign exchange derivatives as a condition for approving their registration application to reduce speculation in the currency market.

Alternative investment funds (AIFs) in India are divided into three categories based on their social impact. Category I funds consist of venture capital, infrastructure and other funds that are deemed to have a "positive spillover" on th