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

Sebi bans the newly formed local hedge fund industry from forex and commodity derivatives to curb speculation in these markets.


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

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