Lacking options

India Risk - Equity derivatives

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India's expansion into the global economy has occurred at a dramatic pace. Overall assets under management of foreign funds investing in India grew from around $5 billion in 2005 to around $25 billion at the start of this year, according to HSBC's alternative investment arm Halbis. But despite the growth levels, investment in India's equity markets has been stymied by the lack of a fully developed derivatives business.

India is one of the few Asian markets with no over-the-counter (OTC) optio